Can you rollover 401K to an IRA account?

F

freewilly

I'd like to roll over my 401K with Fidelity to an IRA account (say TDAMERITRADE IRA account). Just called Fidelity and the answer is no unless:
1. I am 59.5 years old.
2. Left the company

I am much younger than 59.5 and am still with the company.

Has anyone done that without penalty?

Thanks in advance,

Freewilly
 
Called TDAMERITRADE, and the agent said no problem at all.

I am a little bit confused, as all my internet search shows that I can't transfer my 401K money to an IRA account without penalty, but TD agent said that's not true.

Freewilly
 
From irs standpoint you can rollover a 401k to ira, just do it right. Must be a direct custodian to custodian transfer, in kind or cash. If you put a nickel in your own account in the process you fucked it up. Consult both ends and get it right or you are screwed.
 
Quote from startraitor:

From irs standpoint you can rollover a 401k to ira, just do it right. Must be a direct custodian to custodian transfer, in kind or cash. If you put a nickel in your own account in the process you fucked it up. Consult both ends and get it right or you are screwed.
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i don't think this is true if you are still employed with the company.

check with an accountant. or just call the IRS.
 
Quote from freewilly:
1. I am 59.5 years old.
2. Left the company
More...

I believe your number 1 above gets you the money without the 10% early distribution penalty. But you pay tax on it. You cannot transfer it to an IRA while still working for the company. You cannot put periodic distributions from the 401K into an IRA.

To transfer the money to an IRA just number 2 applies. There are no taxes or penalties involved as long as your 401K custodian does a direct distribution (transfer) to the IRA custodian. You pay regular income tax when you begin your IRA withdrawals at 59 1/2 or older.

The above is what I remember when I was involved with this stuff.

Jack
 
Hi, Jack,
That's pretty what I heard from Fidelity and my online search, but TDameritrade says I can without any penalty although I am much younger than 59 and still working for the company.

I guess I have to call:
1. IRS
2. My employer
 
1) You have to leave your current employer in order to take money out of or rollover your 401k.

2) There is no age requirement to do a rollover from a 401k to an IRA.
 
Quote from jeb9999:

1) You have to leave your current employer in order to take money out of or rollover your 401k.

2) There is no age requirement to do a rollover from a 401k to an IRA.
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that's what I did.
 
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