Does anyone know off the top of your head if I can rollover my self-employed 401k (currently with Fidelity) to an IRA (with IB) but leave the 401k open for future contributions?
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Rollover Self employed 401k but leave account open?
- Thread starter SideShowBob
- Start date
Interesting questions - I'm in the same boat (SE401k with Fidelity).Quote from SideShowBob:
Does anyone know off the top of your head if I can rollover my self-employed 401k (currently with Fidelity) to an IRA (with IB) but leave the 401k open for future contributions?
I did some Googling and from what I can tell it depends on the plan.
This implies you can't:
http://www.accumulatingmoney.com/can-i-rollover-my-401k-while-still-employed/
But in this thread someone said they did (a Fidelity 401k not necessarily a SE401k though):
http://www.bogleheads.org/forum/viewtopic.php?t=46056&start=0&postdays=0&postorder=asc&highlight=
However it wasn't clear in that thread if that was done while 'BarbK' was still employed or not:
I recently did a partial rollover of my 401K plan (record keeping by Fidelity). There was nothing in the 401K plan documentation that said that a partial rollover was allowed, nor was it an online option on the rollover menu prompt. But the Fidelity rep said it was allowable, so I tranferred 20% of it into the plan MM and called him the following day to roll it over to the IRA. Sure enough it was allowed and the process went very smoothly.
I checked the Fidelity SE401k plan documents and they do specifically allow rollovers to IRA's ("7.10. Direct Rollover of Distributions") but its not clear to me if you can take such a distribution without meeting one of the std conditions, e.g.
(1) upon attainment of the Participantâs Normal Retirement Age (whether or not employment has terminated);
(2) upon the death of the Participant;
(3) upon the Disability of the Participant; or
(4) upon the termination of the Participantâs employment
Sounds like asking Fidelity would be the best bet. If you find out please post back in this thread.
Yes was thinking I needed to contact Fidelity, will do so and hopefully not be passed around to too many people before I get an answer....
Fidelity just reiterated your points, you need to meet one of the standard conditions to terminate the plan. So unless I fold my LLC and then re-create it again I'm stuck (which I might consider if I had more cash in it).
I actually have some real decent profits in the LLC this year, so I am considering giving half my 50% stake in the LLC to my wife (leaving us each with 25%) and allowing her to contribute her part of the gains to a 401k (so we could each contribute instead of just me). I don't see why this wouldn't be legal, but has anyone done this or could weigh in?
Maybe I should call accountemps?
Maybe I should call accountemps?