401k rollover

[Olbidness]

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.

[dallas27]

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.


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[CoolChange]

Quote:

Originally Posted by dallas27 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?

[dallas27]

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.


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[dallas27]

Dont know if its allowed or even meets your needs, but maybe you could use a sep and save the incorporation hassle.


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[Rustward]

The OP's objective is to take penalty-free distributions before age 59.5. Not sure a SEP will allow that.

[Olbidness]

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.

[Al18]

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.

[unno2002]

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".