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.
Permalink Submitted by Alan Spross on Mon, 2011-01-24 18:04
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.
Permalink Submitted by Jeff Stanga on Mon, 2011-01-24 18:08
“To the day” is the key point. Okay thank you very much for your prompt reply.