Is it common or feasible for employers to allow employees to “rollover/transfer” funds from a 401k to a traditional or Roth IRA while still employed with the same company?
If so, are there any things to watch out for, like capital gains taxes or fees?
I am considering investing in individual stocks or real estate opportunities through a self-directed IRA but have no plans to leave my employer.
If you review your old 401(k) statements, you might notice monthly fees associated with maintaining the account. It’s often better to transfer these funds into a rollover IRA. Rolling over a 401(k) to a traditional IRA doesn’t have any tax consequences. Plus, a rollover IRA offers more investment options compared to the limited choices typically available in a 401(k).
I suggest fidelity.com for the finest alternatives and lowest fees if you decide to do this.
I combined all of my 401k and IRA plans into one IRA at TD Ameritrade, which is now Schwab, after getting divorced and retired in order to have more investment options and simpler tracking.
What you invested in determines the return you are receiving. Where is the previous 401k invested? You made that decision.
Having said that, it makes sense to roll it over. To your new 401k or an IRA, perhaps. Tax consequences do not arise from rollovers.
It is invested in a plan that my former company chose. I called the broker, and they told me I couldn’t alter that. However, I can move money to another location.
The smartest financial decision I have ever made was to roll over my 401k into a conventional account. I am in total control of my investments.
Yep this is exactly what I am going to do. 