Geld ist Freiheit
Recycles dryer sheets
- Joined
- Oct 28, 2015
- Messages
- 91
Smart people of ER, enlighten me on the finer points of moving a 401k. Please point me to previous discussions as appropriate.
If I stay at my current employer, I can access my 401k penalty free if I separate from them in the year I turn 55.
If I leave before then, I understand my options to be:
A) leave the money in the current plan
B) roll into IRA
C} roll into new employer's plan
D) just take the money and get brutalized on taxes & penalties
D really isn't an option.
A & B require waiting until 59.5 to access penalty free.
Under option C, is the money from the first plan (now commingled) accessible penalty free if I separate from the 2nd employer at 55 or later?
In other words, does the IRS differentiate between the original funds and the new funds added at the 2nd employer (even though they are now in the same account) with respect to separating at 55+?
Sent from my iPad using Early Retirement Forum
If I stay at my current employer, I can access my 401k penalty free if I separate from them in the year I turn 55.
If I leave before then, I understand my options to be:
A) leave the money in the current plan
B) roll into IRA
C} roll into new employer's plan
D) just take the money and get brutalized on taxes & penalties
D really isn't an option.
A & B require waiting until 59.5 to access penalty free.
Under option C, is the money from the first plan (now commingled) accessible penalty free if I separate from the 2nd employer at 55 or later?
In other words, does the IRS differentiate between the original funds and the new funds added at the 2nd employer (even though they are now in the same account) with respect to separating at 55+?
Sent from my iPad using Early Retirement Forum