401k Rollover
Can someone remind me of the legislation that passed a while back that allowed active participants in a 401k plan to rollover out of the 401k, assets that were categorized as “rollover” assets? I have a widow client who rolled over her deceased husband’s 401k into her own 401k; however, her 401k has her deceased husband’s amount categorized as a “rollover”. It is my understanding that although she is still working at her company, that she can do an IRA rollover of just those dollars that were previously in her husband’s 401k plan.
Thanks,
Jonathan
Permalink Submitted by Alan Spross on Wed, 2007-08-15 23:49
You are thinking of the “Economic Growth and Tax Relief and Reconciliation Act” of 2001, known as EGTRRA, specifically the portability provisions contained therein.
I am not aware of any requirement that the plan offer in service distributions of that particular rollover however. That is left up to the plan provisions and is therefore optional. It might be wise to request a copy of the plan if you don’t have confidence in what you are hearing from the plan administrator. This is a request that they don’t receive very often.