Is it possible to move my 401K to a personal IRA without first leaving my company?

Question

I am enrolled in our company-sponsored 401K with limited choices for funds. I would like to move it to Fidelity for a broader selection to suit the market situation. The only way I hear to do this is to leave the company, and I would rather not do that.

Thank you!

Answer 1

talk to your human resources department or payroll department to know for sure.

Answer 2

It depends on the policy of the company. It is legal, but that doesn't mean you can do it. Most companies don't allow this because they're matching some of the funds you put in, but they don't see that as a gift, they see it as an investment of sorts. Keeping you happy so you'll stay with them - which is working in your case it seems. If I were you, and not knowiing anything more about your situation, I'd continue putting what they match into the 401K, then contribute to the IRA with anything over and above that amount. In other words, if you normally contribute 5% of your pay, but the company only matches 2%, put 2% in the 401K, and funnel 3% into the IRA, where you have more control.
Hope this makes sense to you. Let me know if I can be of further assistance.

Answer 3

The rules for withdrawing money from a 401(k) plan differ by the source of the money.

The IRS rules for your salary deferrals only allow withdrawal for events like termination, death, disability, financial hardship, etc. and attainment of age 59 1/2. But just because the IRS allows it doesn't mean your company does. They could elect to make the withdrawal provisions more restrictive. The best bet is if you're over 59 1/2 and your company allows withdrawals at age 59 1/2. You can roll that money into an IRA.

The IRS rules for profit sharing contributions (money from the company - not matching dollars) and matching contributions are more liberal. But again, just because the IRS allows it doesn't mean your company has to allow it. They can adopt more restrictive provisions.

Don't hire a CPA for this question - your HR department has to give you a summary plan description (SPD) which explains your plan's provisions in ordinary English. An HR rep should be able to answer your questions if the SPD doesn't.

Most of the prior answers are not correct. You won't lose any match you've already had deposited to your account just because you make a withdrawal.

Answer 4

I doubt it.

About the only time a person can transfer their 401(k) while still working is if they are very close to retirement (age 55 or 59.5). Most employer 401(k)s require their employees to keep the money in the 401(k) until they leave (i've seen a couple that allowed the 59.5 year olds to move it and still work there).

Answer 5

Even if your company invests in funds that aren't your first choice, you are still better to stick with them, especially if the company matches any part of your contributions. Trust me, Fidelity is no better than most reputable fund companies.

Answer 6

Talk to your bank or broker. You may be able to make the move without penalty, but I would advise against it because you will be losing the company match which is free money. That would most likely make up for more than you would gain by adding a half point in interest.

Answer 7

First, do not do anything without talking to a CPA. Secondly, if your company matches any percent of what you put in, is that smart?

Answer 8

i think you can do it by paying a penality but its gonna cost you . my 401 was managed by first fidelity and i made good money in it.

Answer 9

talk to whoever they suggested to talk, but the answer is NO
sorry