Closed fund rollover from 401k to IRA, in-kind

[chassis]

Can a closed fund (not open to new investors) be rolled over in-kind from a 401k to an IRA? Does it depend on the 401k plan rules? Does it depend on the IRA custodian rules?

I want to consolidate accounts, but only if my holdings (which are closed to new investors) can be transferred in-kind to the destination IRA.

I used the search feature on this site and didn't come up with the answer. Apologies if I have overlooked a previous discussion on this. Thanks.

 

[pb4uski]

You would need to ask but I would think so since a closed end fund trades like a individual stock or ETF and while I've never done it I would think that if individual stocks and ETFs can be transfered in-kind then a closed fund could be.

 

[PaunchyPirate]

You should contact the company that you are rolling over to. Ask them if they are able to hold it.

However, every time I have rolled a 401k over to an IRA, the sending company required this to be done via check. They liquidated the funds in the 401k and sent me a check that was payable to the company I was rolling it into with a "For Benefit of PaunchyPirate" appended to it.

 

[target2019]

In my two rollovers from 401(k) last year each was a liquidation of the original funds, and a check went to the new custodian.

 

[chassis]

Thanks for the comments, much appreciated. A check, from liquidated 401k holdings, seems to be what the sending company will do.

 

[Montecfo]

If your broker appeals to the fund you may be able to repurchase your shares from the cash you get from 401k. After all, you are an existing investor, just from another vehicle.

It depends more on the fund than anything else.

Good luck.

I transferred my 401k to IRA in kind, but this is not typical. It pays to ask.

 

[chassis]

Thanks @Montecfo.

I just received a message from my IRA custodian indicating funds are received from the sending institution as a liquidation amount, not in-kind.

I just sent a request to the IRA custodian asking to purchase shares in the closed fund. Hopefully this works. If it doesn't, I have a workaround.

Thanks again for the comments.