Most people think they have to leave their job before they can move money out of their 401(k) but that\u2019s not always the case.<\/p>\n
If you’re over age 59\u00bd and still working, many retirement plans allow what’s called an in-service rollover. This little-known strategy lets you roll over some or all of your 401(k) funds into an IRA\u2014without taxes or penalties\u2014while continuing to contribute to your 401(k) at work.<\/p>\n
Why consider an in-service rollover?<\/strong><\/p>\n Here are a few key reasons it might make sense: More Personalized Management<\/strong><\/em> Potential for Lower Costs<\/strong><\/em> Better Coordination With Estate or Tax Planning<\/strong><\/em> Is there a catch?<\/strong><\/p>\n \u00a0<\/strong>Not every employer allows in-service rollovers, so the first step is checking your plan rules. And while an IRA may offer more flexibility, it also means taking responsibility for investment decisions\u2014so having professional guidance becomes even more important.<\/p>\n While IRAs can offer lower fees, some investment choices or advisor fees could result in higher overall costs than your current 401(k) plan. In addition, in choosing an in service withdraw to an IRA, you would lose the 401(k) loan feature, limited creditor protection, and not be able to access the money prior to age 55 without proper planning.<\/p>\n Who is it right for?<\/strong><\/p>\n \u00a0<\/strong>An in-service rollover might make sense if you: Let\u2019s talk<\/strong><\/p>\n \u00a0<\/strong>If you’re curious whether an in-service rollover fits into your strategy, we would be happy to review your options with you. It\u2019s a powerful tool\u2014but like any tool, it works best when it\u2019s used at the right time and for the right reason.<\/p>\n","protected":false},"excerpt":{"rendered":" Most people think they have to leave their job before they can move money out of their 401(k) but that\u2019s not always the case. If you’re over age 59\u00bd and still working, many retirement plans allow what’s called an in-service rollover. This little-known strategy lets you roll over some or all of your 401(k) funds…<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[75],"tags":[],"class_list":["post-17195","post","type-post","status-publish","format-standard","hentry","category-401k-newsletter","category-75","description-off"],"_links":{"self":[{"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/posts\/17195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/comments?post=17195"}],"version-history":[{"count":2,"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/posts\/17195\/revisions"}],"predecessor-version":[{"id":17214,"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/posts\/17195\/revisions\/17214"}],"wp:attachment":[{"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/media?parent=17195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/categories?post=17195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.focusonsuccess.com\/insights\/wp-json\/wp\/v2\/tags?post=17195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nMore Investment Options<\/strong><\/em>
\nMost workplace plans have a limited fund menu. IRAs offer a broader range of investments, including ETFs, bonds, and professionally managed strategies.<\/p>\n
\nIRAs allow for customized portfolio design and risk management based on your retirement goals and time horizon\u2014not a one-size-fits-all plan default.<\/p>\n
\nDepending on your 401(k) plan’s fee structure, an IRA may offer access to lower-cost funds or more holistic advice.<\/p>\n
\nIRAs often integrate more cleanly with your broader wealth and estate planning, offering features like Qualified Charitable Distributions or Roth conversion flexibility.<\/p>\n
\nAre age 59\u00bd or older
\nWant greater investment flexibility or professional management
\nAre planning for retirement in the next 5\u201310 years
\nAlready have or are building a comprehensive retirement plan<\/p>\n