I have a 401k plan through the company I am currently employed with. Can I move any of that money into any other type of retirement plan that's not part of this company?
2006-10-02 13:57:18 · 8 answers · asked by oneurbanite 3 in Business & Finance ➔ Investing
yes. It's called rolling over your account. Contact the place you wanna put the money into.
2006-10-02 13:59:32 · answer #1 · answered by Brand X 6 · 1⤊ 0⤋
Yes to the headline question, but with caveats. You may have more flexibility with respect to this once you've left the company, as you will then have the choice of rolling the funds into a self-directed IRA, but even now, as a current employee, you can borrow from your own plan for specific purposes, such as house construction and education, if you observe certain rules covering repayment. Your company should have documentation or a website providing the relevant details. Be aware though, that there are tax penalties for taking monies from a 401k under anything other than the conditions specified. You asked about moving specifically to another retirement plan outside the company, but these plans typically don't allow for that while you're employed.
2006-10-02 21:10:37 · answer #2 · answered by echolocated 2 · 0⤊ 0⤋
Yes. You can roll over 401k to Traditional IRA or Roth IRA outside of your current custodian that might give you more investment options.
However, you may want to check your company policy. If you have company matching that's vesting over time, taking your own contribution out might mean you forfeit the company contribution. This might mean a lot of money.
While you rolling from from 401k to any kind of IRA, you have access to the money for 60 days. As long as you make sure the money is back in an IRA account before the end of 2 months, there is no penalty.
While you are selecting a new custodian for IRA, try to pick ones that does not collect or refund part of 12b-1 fee, i.e. eTrade.
Best wishes.
2006-10-02 21:13:33 · answer #3 · answered by JQT 6 · 0⤊ 0⤋
No. Since you are still employed with the company you will not be able to move your 401k unless you pay penalties and taxes on it (which is not something you want to do). Once you leave the company then you can move it over to a Traditional IRA.
2006-10-02 21:40:37 · answer #4 · answered by swanny2213 2 · 0⤊ 0⤋
This is a question only a tax accountant can answer as you don't say what type of 401k you have. There are about a thousand rules that could apply.
If you change jobs you can certainly transfer those funds to a new account.
As for anything else you could face a tax penalty. See an accountant to go over what you want to do.
2006-10-02 21:08:53 · answer #5 · answered by my_iq_135 5 · 0⤊ 0⤋
Same answer as above, but just make sure that you never touch the money. It must go directly from one account into the other, or you will pay 40% in taxes.
2006-10-02 21:02:02 · answer #6 · answered by normobrian 6 · 1⤊ 0⤋
Same as second answer here, but you'll ALSO pay 10% penalty for early withdrawal if you're not 59-1/2 yrs old.
2006-10-02 21:05:57 · answer #7 · answered by Momma 3 · 0⤊ 0⤋
swanny is right. You must terminate employment to move, or restructure your account.
2006-10-02 21:52:03 · answer #8 · answered by Anonymous · 0⤊ 0⤋