1. Home
  2. Taxes General Forum
  3. Transferring 401K to IRA Before Employment Termination

Transferring 401K to IRA Before Employment Termination

Is there any provision for transferring a 401K balance into an IRA account

*before* you terminate employment? Generally IRA accounts offer much more flexible investments than 401K plans. So for active investors it is far preferable if you can periodically transfer out of an active 401K and into an equivalent IRA. Unfortunately, it doesn't look like brokers have a process for doing this until after you terminate employment. What is the law on this issue? Is there a way to force a transfer out of 401K and over to IRA while you are still actively employed?
Reply to
W
Loading thread data ...

Yes, most companies allow a post 59-1/2 in service rollover. But, only the funds and growth from your deposits, not matching.

For under 59-1/2, no, you cannot do this. Joe

Reply to
JoeTaxpayer

In general the first place to ask questions about what's allowed in a

401(k) is YOUR plan. The law gives them a lot of flexibility. If you suspect something's amiss in your plan, then look to the law to see if they're in compliance.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

Reply to
Phil Marti

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.