Turning 59 in March | Ed Slott and Company, LLC

Turning 59 in March

What is the rule with moving money from an existing 401K during the year you turn 59 1/2? I know once I am 59 1/2 (September) I can move the funds but I was hoping to do it sooner? Secondly, it looks to me that IRS doesn't care if I move the money from 401K to IRA at anytime, it is only my 401K plan administrator. Is this correct? Thank you.

Yes, basically correct. You can take distributions and/or do rollovers anytime under IRS rules, but most qualified retirement plans do not allow "in service distributions" until you reach 59.5 to the day.

"To the day" is the key point. Okay thank you very much for your prompt reply.

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.

I agree to the terms and services:

You may review the terms and conditions here.