401k transfers enable investors to direct the transfer of funds in their retirement account to a new plan or IRA.
Funding your Self Directed IRA Through 401k Transfers
What you need to know
- A 401k is a tax-qualified retirement plan which allows employees to contribute a before-tax portion of their salaries. You can transfer 401k funds after age 59 1/2 or termination of employment. Call your plan administrator to determine if a transfer of funds is permitted. The trustee-to-trustee transfer is not a taxable event. Unlike an IRA transfer, the 401k trustee will accept instructions only from the account owner, YOU. Once the transfer is initiated, please allow two to three weeks for the funds to arrive in your new Self Directed IRA.
The Benefits of Transferring Funds from a 401k
- A trustee to trustee transfer is NOT a taxable event
- You can transfer funds to a Roth or Traditional Self Directed IRA