Moving a 401(K) in a storm?

Factual Questions
1

My wife and I were discussing this question based on the uncertainty of the stock market lately: Can one move their 401(K) into an IRA at any time without penalty? (Assume I am far below the retirement age.) I said you couldn’t do this, but maybe certain times of the year you can??? Also, assume one is not changing jobs, for example, nor going through any hardship or life-altering event which may allow this.

In short, can you take your 401(K) money out and run with it to the nearest bank offering retirement IRAs?

  • Jinx

“The money comes, the money goes…” (B. Joel)

2

No. There has not been a “distributable” event.

Doesn’t your 401(k) plan offer any fixed income type option? (Fidelity’s US Bond Index Fund as an example).

The plan administrator of your 401k, (oftentimes the CFO, HR Director, CEO) has a legal obligation to provide diverse fund options in the plan. I would be surprised if no stable, fixed or managed income option is available.