Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
401k rollover
Old 08-20-2014, 12:07 PM   #1
Recycles dryer sheets
Olbidness's Avatar
 
Join Date: Jan 2009
Location: W. Galveston Bay
Posts: 195
401k rollover

Has anyone left a job short of being 55 years old and searched for a new job based mainly on the prospect of rolling over a 401K balance.
With the retirement money in the new job 401K I could then retire at 55 and avoid the 10 percent penalty for early withdrawal. It would be necessary to look at the fees and rules of the new plan to make a informed decision.

I know about the 72T option but that locks in a specific amount to withdraw for 5 years.
__________________

__________________
Olbidness is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-20-2014, 01:28 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,035
You could possibly form a business for a few years, create your own 401k, shut the business down after a few years. Would cost you a few hundred bucks in state fees, but you would have the control.


Sent from my iPhone using Early Retirement Forum
__________________

__________________
dallas27 is offline   Reply With Quote
Old 08-20-2014, 01:50 PM   #3
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 925
Quote:
Originally Posted by dallas27 View Post
You could possibly form a business for a few years, create your own 401k, shut the business down after a few years....
I am considering doing this very thing, mostly to consolidate my various 401(k) accounts. Anyone have any actual experience doing something like this and rolling multiple 401(k) accounts into it?
__________________
If there's one thing in my life that's missing; It's the time I spend alone
Sailing on the cool and bright clear waters; There's lots of those friendly people
Showin me ways to go; And I never want to lose your inspiration
CoolChange is offline   Reply With Quote
Old 08-20-2014, 03:55 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,035
I do, its just a transfer. Ask for a distribution made out to the new 4o1k, FBO your name. First you have to set up the 401 if course.

Beleive me, the hardest part is sitting on hold with your old employer, fidelity, whatever.


Sent from my iPhone using Early Retirement Forum
__________________
dallas27 is offline   Reply With Quote
Old 08-20-2014, 03:56 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jun 2014
Posts: 1,035
Dont know if its allowed or even meets your needs, but maybe you could use a sep and save the incorporation hassle.


Sent from my iPhone using Early Retirement Forum
__________________
dallas27 is offline   Reply With Quote
Old 08-20-2014, 04:31 PM   #6
Thinks s/he gets paid by the post
Rustward's Avatar
 
Join Date: Apr 2006
Posts: 1,572
The OP's objective is to take penalty-free distributions before age 59.5. Not sure a SEP will allow that.
__________________
Rustward is offline   Reply With Quote
Old 08-20-2014, 09:02 PM   #7
Recycles dryer sheets
Olbidness's Avatar
 
Join Date: Jan 2009
Location: W. Galveston Bay
Posts: 195
For example I've looked at the 401K plan of Home Depot and it's not too bad. It's probably not too terribly hard to get hired and they have economies of scale so the fees are not bad. I'm sure there is someone in a cubicle that would raise an eyebrow when they see a 7 figure transfer.
__________________
Olbidness is offline   Reply With Quote
Old 08-21-2014, 06:28 AM   #8
Recycles dryer sheets
 
Join Date: Aug 2013
Posts: 188
FYI the ability to retire in the year you turn 55 is a feature of some 401K plans, but not all. Search the 401K Summary Plan Description (SPD) for the details. I work for a company with more than 30 divisions, and was surprised my companies SPD did not allow retiring at 55 and taking penalty free distributions.
__________________
Al18 is offline   Reply With Quote
Old 08-21-2014, 11:57 AM   #9
Recycles dryer sheets
 
Join Date: May 2014
Location: Yuma AZ
Posts: 270
If the goal in a 401k rollover is to be able to withdraw cash after age 55, be certain to check the terms of the new employers 401k… I suspect that most will NOT allow a withdrawal while still working for the company.

I "second" the suggestion of setting up your own company, and then your own 401k with the rules you want. Run a web search for something like "solo 401k".
__________________

__________________
unno2002 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
401k to IRA rollover problem Andre1969 FIRE and Money 3 01-04-2007 01:17 PM
401K Rollover to Roth in 2008 crazy connie FIRE and Money 6 10-01-2006 08:31 AM
Net unrealized appreciation: Reason to liquidate 401k instead of rollover? free4now FIRE and Money 2 06-20-2006 08:16 PM
Creditor Protection 401K/Rollover IRA/etc. kaneohe FIRE and Money 6 03-17-2006 08:48 AM
401K: *Stay in or rollover (Beethoven) Dogcliff FIRE and Money 7 03-18-2004 06:58 PM

 

 
All times are GMT -6. The time now is 01:48 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.