Discussion:Rollover 401k to Reg IRA
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Discussion Forum Index --> Tax Questions --> Rollover 401k to Reg IRA
| 18 August 2007 | |
| 60 Yr Old Married T/P with 401k whose spouse has her own 401k wants to transfer his entire 401k to another broker outside the company. Client asked: Are there any tax issues?
MY Suggestion: Yes, if you just transfer out entire balance you will have no 10% tax penalty however all of the lump sum payment will taxed as ordinary income. So why not transfer into another brokerage account and set it up as a self-directed Reg IRA that way no taxable income. Just make sure the transfers can be done between the 401k and IRA, AND the funds are not sent directly to you. Is this correct or is there anything else to cover? | |
| 18 August 2007 | |
| Read the 401(K) doccuments. If he is still working at the firm, they may not allow this. | |
| 20 August 2007 | |
| Most 401(k) plans will allow an in-service distribution if the employee has attained the age of 59½. | |
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