[$$$] 401k rollover - denied!

[mattkime]

I use Vanguard. No fees.

tenders wrote:
There may be an annouing small fee here or there but total fees in your 401k are likely lower than the total fees in your IRA. Companies like Fidelity LOVE to have people roll out of 401ks and into IRAs for exactly that reason. I'd keep the 401k and instead make the case to consolidate the assets in the funds you like the best. (can you really pick the fund now that you'll have liked the best in 1,3,5 years? Tough to do.)

[tronnei]

AllGold wrote:
Some companies allow an "in-service" rollover, meaning you can do it even if you haven't left the job. But it's only some companies and those who do rarely advertise it.

Such cases still have to comply with IRS rules regarding permitted distributable events. For example, the law provides that plans can allow distributions at age 59-1/2 whether or not you've terminated employment. Distribution of 401(k) contributions is generally prohibited before that age, the major exception being "hardship" as that term is narrowly defined by the IRS. And hardship distributions cannot be rolled over.

[Speedy]

tronnei wrote: the law provides that plans can allow distributions at age 59-1/2 whether or not you've terminated employment. Distribution of 401(k) contributions is generally prohibited before that age, the major exception being "hardship" as that term is narrowly defined by the IRS. And hardship distributions cannot be rolled over.

mattkime is only 29. But likely he'll easily qualify under the 'hardship' rule.

[tenders]

mattkime wrote:
I use Vanguard. No fees.

I don't know the specifics of your situation. But I do know that there are NEVER no fees. Somewhere, somehow, somebody is getting paid to run and keep track of your account. Maybe not much, and maybe not in an easy-to-see way, but there most certainly are fees, and in my experience, the harder the fees are to see, the higher they are.