Tag Archives: Saving

Retiree looks to move 401(k) money to IRA

Retiree looks to move 401(k) money to IRA

Two years ago, I retired at age 55 after working for my employer for 38 years. I’m wondering whether I can roll my 401(k) money into an individual retirement account without incurring the 10% penalty. If not, I have heard that I can withdraw the money from my 401(k) in 5 equal installments. Is that true?

— Connie Conundrum

Dear Connie,
Early retirement is something to celebrate. You’ve already made many of our younger readers a bit envious.

Now that you’re ready to do some work on plotting your future, let’s begin. One of the first steps is determining your goal in moving your 401(k) plan funds. Are you trying to take distributions while avoiding the 10% penalty for early withdrawal? Or, do you want the money to increase investment options and control of the account?

Your 401(k) plan may give you the option to withdraw funds without penalty between age 55 and 59 1/2.

Click here for access to more questions like this, as well as tools and programs to help your become more equipped to help your clients and build your book of business.

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Article By Dr. Don Taylor, Ph.D., CFA, CFP, CASL