Author Topic: Question about 401k rollover into IRA and then withdrawing funds  (Read 1260 times)


  • Stubble
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  • Posts: 158
I started a side business (online retail sales) and asked about withdrawing some of my Roth contributions to invest in inventory. Found out because of the agreement between my employer and the investment firm I can't touch any of my funds while I'm still employed there (or over age 59-1/2). However I may be able to take a temporary lay off soon (I've already done it twice in the past couple years, every time we get slow I volunteer for a lay off) and was thinking maybe I could use the layoff as an opportunity to roll my 401k into an IRA.

Now I'm not sure how the rollover works but I have about 13K in roth funds (11k of which are contributions) and the rest is all "normal" pretax 401k funds (about another 25k) and I'd like to keep it allocated that way and just be able to have access to the roth contributions which from what I've learned I shouldn't have to pay any taxes or penalties on.

Am I thinking about this correctly and will it give me access to those funds or am I missing something? If it helps I already have a Vanguard account (roth IRA) but only have about 1K in it. If anyone can give me a little guidance I'd really appreciate it! Thank you!


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