if you roll money from a 401k to a ..ira acount how long do you have to leave it to avoid penaltys?

Answer 1

You have 60 days to roll the money from 401K to the IRA account. Anyway, here is the URL that will answer all your other questions.. Straight from the horse's mouth, oops, I meant IRS mouth. lol
http://www.irs.gov/faqs/faq-kw88.html

I always thought the penalty was money you lost. WRONG. You report the money you took out as income and the penalty is like the income tax. So I withdraw all my 401k cuz I needed it and the penalty was the tax check I got back. So if you withdraw before the required age and get a penalty then you can figure out how much "penalty" you may bet back from the IRS added of course to your regular w2s

Answer 2

If you roll the money over from an 401K to an IRA in the proper way -direct roll over to the new IRA. There is no penalty --it has nothing to do with time.
The penalties for removing the funds too early are the same for both type of investments BUT there is no penalty for transferring it to the IRA .

Answer 3

There is no penalty of rolling a 401K into IRA. If you plan to withdraw it, be ready for a 10% penalty and regular income tax. If you have a chance to roll 401K into a IRA, do it. You will have many more investment choices in IRA.

Answer 4

It depends. You didn't say what type of account you are rolling it into. If you are going into mutual funds, it depends on the share class: A shares - no minimum. B shares - 5 years. C shares - 1 year. If you are going into a fixed account or EIA, then it depends on the company's policy. Other than that, there are no tax regulations as long as it is a rollover. Good luck!