Move IRA to 401k

[JohnDoe]

Hi.

Has anyone successfully moved their IRA account in their 401k account to make it available for w/d at age 55 without paying penalties. (age-55 rule)

Is this possible?

Thanks.
JD

[panacea]

Yep, did it just before year end. You just have to find out if your current 401k plan allows for incoming rollovers and then also you want to make sure your plan is eligible for the age 55 withdrawal (not all plans are set up this way).

[pb4uski]

Unless your 401k has a good stable value fund or some good investment options (most 401k's do not have great investment options) I would limit the transfer to the amount needed to get me from ER to 59.5.

IOW, no need to do the whole thing unless you need the money from ER to 59.5.

[panacea]

Quote:

Originally Posted by pb4uski Unless your 401k has a good stable value fund or some good investment options (most 401k's do not have great investment options) I would limit the transfer to the amount needed to get me from ER to 59.5. IOW, no need to do the whole thing unless you need the money from ER to 59.5.

Good point- my IRA went into a low cost Fidelity 401(k) with several good options. Case by case.