"T.C. Mann" <Inthemedia[at]yahoo.com> wrote:

- quote -

If you have questions about your plan, you should consult
the people who run it.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

T.C. Mann wrote:

- quote -

You need to read the provisions for withdrawal in the
documents for your 401(k) from your employer. Those
documents may spell out the circumstances for
withdrawal/transfer.

I worked for a company which spun off my division. I was
permitted to roll my accrued pension into an IRA at the
broker of my choosing, but the 401(k) had to stay with the
custodian of the new company. Bottom line - yes, they can
block it.

If they block it, he question of penalty is rendered moot.
Well, no, if they allow it, just do the direct transfer and
all should be ok.

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

T.C. Mann wrote:

- quote -

Yes if the 401K Plan says so. 401K plans are designed to
provide an incentive to save. Therefore, withdrawals prior
to reaching retirement age are usually only allowed for
death, disability, termination of employment and financial
hardship.

- quote -

I don't know what you mean by "penalty". the plan will
either allow it or not. There may be an administrative fee
but only if the plan says so.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

My current employer has a 401k plan which I have
participated in for the past 3 years. I am no longer
comfortable with the quality and diversity of the investment
choices in this plan, not to mention the poor rates of
return. As such, I would like to do a direct rollover of
100% of my vested monies into a traditional IRA in order in
order to increase my investment choices. I am not planning
to terminate my participation in the plan so the I can
continue to receive my employer's contribution. I just
don't feel comfortable having all my retirement savings
there. The questions I have are:

Can my employer block such a transfer?

Can my employer legally charge a penalty?

Any other problems with doing this?

Thank you

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >