I have a small 401 account at a local bank from a match where I used to work. I would like to transfer it to a 401 that I have with vanguard. can you do this without tax consequences and how would you do it? thanks
No tax consequences if you follow the rules mentioned.
I wonder what the benefit of rolling over into a new employer's 401K has over rolling it over to an IRA? Other than some protection against creditors (which are provided for IRA's in many states), or possible future loans (which I would never suggest). I don't know of any.
But a 401 account at a bank? Maybe you mean an IRA rollover account funded from a previous 401?
I had always treated my IRA (and 401K's for that matter) similar to a pension or SS. I would never be able to make a partial withdrawal from a pension or SS, so I considered my IRA in the same light. Money in the account was never to be touched until retirement. In the very small possibility that the SHTF, I could always withdraw from the IRA with 10% penalty (plus pay taxes of course) The very low likelihood of ever needing to do that was so low that I figured the 10% penalty would just be the cost of doing business. Fortunately, or possibly by good planning, I never had to do that.100% correct.
Most people have limited risk with being sued. Most don't even have enough to bother with. Some small company 401ks only need one signature for a CEO to abscond with all the funds to Taihiti. That is a larger risk.
Perhaps a age 55 withdrawal age vs. Age 59.5? If that is your reason, you probably don't have enough to retire.
I would never want to risk money in a 401k that I could have in an IRA.
No tax consequences if you follow the rules mentioned.
I wonder what the benefit of rolling over into a new employer's 401K has over rolling it over to an IRA? Other than some protection against creditors (which are provided for IRA's in many states), or possible future loans (which I would never suggest). I don't know of any.
But a 401 account at a bank? Maybe you mean an IRA rollover account funded from a previous 401?