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  • IRS Regulations

    Hi there.  I am an employed doc.


    The Benefits manager tells me my employer sponsored Fidelity 401k plan is restricted by IRS rules-- such that:  (1) I am allowed to roll IN (rollover) IRA monies I possess in a separate account elsewhere (derived from a 401k I had from a previous employer) but somehow (2) I am NOT allowed to roll OUT 401k monies generated from my current employment and housed in my current employer sponsored 401k to an external/personal IRA.


    Is this true and is there an explicit IRS rule about such?


    Many thanks!






  • #2
    You wont be able to move out any matched but not vested funds but that should be obvious. Maybe you should just read the documents yourself as its unlikely the HR person really has a lock tight handle on the specifics.

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    • #3
      Thanks for that suggestion.

      Comment


      • #4



        Hi there.  I am an employed doc.


        The Benefits manager tells me my employer sponsored Fidelity 401k plan is restricted by IRS rules– such that:  (1) I am allowed to roll IN (rollover) IRA monies I possess in a separate account elsewhere (derived from a 401k I had from a previous employer) but somehow (2) I am NOT allowed to roll OUT 401k monies generated from my current employment and housed in my current employer sponsored 401k to an external/personal IRA.


        Is this true and is there an explicit IRS rule about such?


        Many thanks!







        Click to expand...


        Not an IRS rule. It's up to the plan document. But that's the way most are written.
        Helping those who wear the white coat get a fair shake on Wall Street since 2011

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        • #5

          • As WCI says, it's up to the 401k administrators and, ultimately, the employers as to whether you can roll prior 401k funds in to your current 401k. It complicates the administration and recordkeeping of your current 401k, so easy to understand why it might not be allowed.

          • I have never seen a plan document for a 401k(other than a SOLO) that allows in-service rollovers from the 401k to your IRA, but they probably exist somewhere.


          This has nothing to do with IRS regulations. Ask for a copy of your SPD (Summary Plan Document) and read it carefully. Of course, there may be provisions that are not addressed, such as a roll-in of 401k monies that are assumed to be disallowed by omission.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            I don't see the reason to roll money out of a 401k to an IT'S in the first place. It will preclude your backdoor Roth ira.

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            • #7
              Some of the monies in my employer sponsored 401k plan is Roth contributions- I was considering rolling out that Roth portion into a personal or "directed" Roth account and then invest that.

               

               

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