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Early withdraw from Roth IRA after 401K transfer
Old 06-09-2015, 10:09 AM   #1
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Early withdraw from Roth IRA after 401K transfer

Hi,

I was wondering if someone could answer a question for me. I''m 53.5 and got laid off 2 months ago. I started work with a new company this month and am going to roll over my 401k to my new employers plan. I have both before tax and after tax money in my ex employers 401k and want to roll the already taxed money (not 401K Roth) into a Roth IRA and the pre tax money into my new employers plan so I can access it before I turn 59.5 when I retire early. I know that I can put the money into the Roth since the 2014-54 ruling, my question is if I put the after tax 401k money into an existing Roth I started in 2007 can I take out those contributions before 59.5 without the 10% penalty?

Any help would be appreciated.

Regards,

Rich
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Old 06-09-2015, 10:17 AM   #2
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I have both before tax and after tax money in my ex employers 401k and want to roll the already taxed money (not 401K Roth) into a Roth IRA and the pre tax money into my new employers plan so I can access it before I turn 59.5 when I retire early.

Be sure that your new employer's 401K plan allows withdrawals prior to age 59.5 (if you terminate service there after after age 55). The IRS rules give employers the option to allow this, but IIRC it is not required, and not all plans allow it. I know that wasn't your question, but it's worth a look.
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Old 06-09-2015, 10:30 AM   #3
Confused about dryer sheets
 
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Thanks for that advice, I wasn't aware of that as my last employer did allow that and I didn't know that it was up to the plan, I thought it was standard. I will check into that now that you have mentioned that....I've already learned something, I'm stoked!
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Old 06-09-2015, 10:42 AM   #4
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In addition to being described in your SPD , the employer must allow access to the funds. I've read too many posts of people who had it in the SPD, but no access other than a 1 time rollover. Good luck.

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Old 06-09-2015, 10:52 AM   #5
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fairmark.com is a great resource for this kind of question. There's a forum there for asking questions that I've found helpful if the topic isn't covered or the answer isn't clear.
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Old 06-09-2015, 11:40 AM   #6
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fairmark.com is a great resource for this kind of question. There's a forum there for asking questions that I've found helpful if the topic isn't covered or the answer isn't clear.
Second this suggestion. Be sure you ask in the retirement sub-forum and look for Alan S.'s response. My guess is that you'll be ok since your Roth is > 5 yrs old but you should get Alan S. to confirm to be sure.
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Old 06-09-2015, 12:50 PM   #7
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Thanks to everyone for your response, Allan S. did reply to me on the other forum and confirms that I will be able to remove from the Roth IRA without a penalty. I will check with the new plan and make sure I can withdraw from it when I stop work before 59.5

Rich
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