Does anyone have experience with rolling over a 401K while working for a company, while actively continuing to contribute money to the 401K? I currently work for a hospital group whose 401K plan consists of only 20 choices, all of which have high fees. I'd like to periodically roll the contributions over to my Vanguard IRA while still contributing to my 401K, but I'm not sure if this allowed, and if it is what are the possible negatives associated with this transfer?
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IRS regulations prohibit the in-service withdrawal/rollover of employee deferrals (traditional and Roth) prior to age 59 1/2, but do allow them >= age 59 1/2.
IRS regulations do allow the in-service withdrawal/rollover of vested employer contributions, previous rolled in assets and employee after-tax contributions prior to age 59 1/2.
An employer can but is not required to permit the specific allowed in-service withdrawal/rollover options they choose.
Since the majority of your 401k assets are likely to be employee deferrals and earnings, you are likely to be disappointed regardless of what your employer allows, unless you are >= 59 1/2.
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