Author Topic: Roll over 401k while still employed?  (Read 1300 times)

Bmayzing

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Roll over 401k while still employed?
« on: November 09, 2016, 06:57:46 AM »
Hello,

I've been reading on this topic for awhile now but still can't grasp the advice. My current employer's 401k funds are pretty much border line criminal. Out of 28 funds there is only 1 option below 1% net expense ratio. The rest of the options average out around 1.85% with several that are above 2%. My question is (if it makes sense), can I or should I roll over my current 401k (while still employed) plan to an IRA that has better investment options with lower expense ratio's?

Proud Foot

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Re: Roll over 401k while still employed?
« Reply #1 on: November 09, 2016, 10:11:42 AM »
If your plan allows it I would say go for it. 

seattlecyclone

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Re: Roll over 401k while still employed?
« Reply #2 on: November 09, 2016, 10:12:22 AM »
You generally can't roll 401(k) funds out of the plan while you're still employed there. Traditional after-tax funds are an exception. In general you'll have to wait until you switch jobs.

catccc

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Re: Roll over 401k while still employed?
« Reply #3 on: November 09, 2016, 10:51:53 AM »
I'd be surprised if your plan allows it.  How big is your company?  If it's small ish, maybe they don't really know how much the ERs are hurting their employees.  Maybe they are willing to change providers?

GrOW

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Re: Roll over 401k while still employed?
« Reply #4 on: November 09, 2016, 11:06:49 AM »
Agree with others. Call your HR and/or 401k administrators and ask specifically about an "in-service rollover". If they allow it, ask how about limitations such as # of times per year you can do it and if a minimum dollar amount is required for rollover. Armed with that information, you are ready to act and save on fees.

Bmayzing

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Re: Roll over 401k while still employed?
« Reply #5 on: November 09, 2016, 01:25:15 PM »
Great, thanks for the advice. My company is rather small (75-100 employee's). I have brought this up to our HR on several occasions but she is super oblivious to this stuff as are a majority of my co-workers and seem to be content with the paycheck to paycheck life-style and never wanting to retire.