How to change a 401k into an IRA?

[Jonathan_Chance]

@TimeWinder

Yes. No employer I’ve ever worked at has allowed you to roll over 401k funds while still employed with them, unless the rules have recently changed.

It is allowable and it’s called an ‘in service distribution’. But very few plans allow for it. So check your plan.

[Jonathan_Chance]

@Dewey_Finn

And if DummyGladHands isn’t still working there, can he move some of the money out of the 401(k)? I thought you had to move all or nothing.

Yes, partial out of service distributions are generally allowed. I’ve done a few myself. But it’s rare that a client wants that.

[DummyGladHands]

Thanks, will check. Want to keep it open and continue contributions there for the employer match.

[DummyGladHands]

In-service distribution is approved.

Now, to that 1.5" of terms and conditions!