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401k

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Old Aug 13th, 2007, 06:57 PM     #1
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Default 401k

can I transfer or rollover my 401k before I leave the company?
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Old Aug 13th, 2007, 07:07 PM     #2
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Default Re: 401k

This is what I see: Legally, yes the IRS allows you to rollover 401(k) money into a Traditional IRA at any time. However, most employers will not allow this. Usually you will have to quit, retire, be fired, or become disabled to do this.
Companies often times have exclusive contracts with the fund companies in their plan and do not want money of current employees going out the door to someone else. Also, it becomes a major hassle for employers to rollover money every time an employee wants to move a little money to an IRA. Most 401(k) plans are not heavily staffed and this would place an undue burden on them. It's great when your employer does allow rollovers at any time, however most will not allow rollovers until you sever employment. Often times it is the restrictions of the company plans that cause the problems, not the IRS.
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Old Aug 14th, 2007, 09:52 AM     #3
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Default Re: 401k

thank you!
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