The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: netskyblue on September 24, 2019, 06:35:53 AM

Title: Possible to move money from active 401k to IRA?
Post by: netskyblue on September 24, 2019, 06:35:53 AM
My company just notified us that they are going to replace all the funds in our current 401k menu with managed funds.  I am invested solely in the only index fund they currently offer - which is going away.  Do I have any option to move money out of my 401k into my Vanguard IRA where I control where it is invested, as it comes in?
Title: Re: Possible to move money from active 401k to IRA?
Post by: terran on September 24, 2019, 07:52:15 AM
Possible, but unlikely. What you need to know is if they allow in-service non-hardship withdrawals. This is not common.
Title: Re: Possible to move money from active 401k to IRA?
Post by: Brianmcg321 on September 24, 2019, 10:36:11 AM
I would send your HR folks links to all the lawsuits by employees against companies that didnít provide enough low cost fund options. The latest one was against UGA or Georgia Tech I believe.
Title: Re: Possible to move money from active 401k to IRA?
Post by: sonoranson on September 24, 2019, 11:15:12 AM
Some 401k's offer a brokerage window option.  Mine is offered through Ameritrade for instance.  You'd have to look through your plan documentation to see if one is offered.  There is probably a maximum allowed to divert from the plan itself and there are likely yearly fees associated.