How do I move some money out of my 401K and into my IRA without quiting my job ?

Question

I would like different investment options than are in my 401K.

Answer 1

As already mentioned, you cannot do this without a "separation of service" from your employer, which translates to your employment ending.

If you are unhappy with the options, I would definitely bring it up to your plan sponsor (try your HR department), as well as request the ability to open a "self-directed" 401k account. If a bunch of people are unhappy, it definitely carries some weight as far as getting a better plan or self-directed accounts.

Persistence pays off...


More employers are allowing employees with a certain minimum balance to choose other investments outside the standard, as long as you sign a mountain of paperwork.

Further, if you are contributing money above what is getting matched by the employer, I would contribute that excess to an IRA (probably a Roth) instead.

Then you could balance out your portfolio by using the best options available for one or two asset classes in the 401k, and buying the best options for the others in your IRA.

Hope that helps! Good luck!

Ken Clark, CFP
Certified Financial Planner


Disclaimer:
Answers provided are for general educational purposes only, and may exclude other important factors relevant to your unique situation. No reader should act on the information contained in this article without consulting a financial professional directly.

Answer 2

If you are still on the job, you should ask your employer if you can take money out of your 401K without a penalty, even if you are moving it to an IRA. If you can't, then stop your 401K deductions from your paycheck and when you have enough to put in an IRA, open up a new IRA account at your financial institution.

Answer 3

You can't.
You need to terminate employment (quit or be let go) to get the money out without taking an early withdrawal penalty.
You probably can take it out temporarily - i.e. a loan from your 401(k), but it IS a loan, it still needs to be repaid...

Answer 4

Read your company's option on your 401k. You will be allowed for early withdrawal without tax if you roll over within 60 days.

Answer 5

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