401k rollover to IRA

You are here:
< Back

L1: 401k rollover to IRACan you rollover from a 401k undergoing 72t withdrawals to an individual IRA or does the IRS consider this a distribution. Would plan to rollover the entire 401k assests yet this year. Have been taking annual distributions from the 401k since Jan 2003 and will be 59.5 in April 2010. Would take the final 2010 distribution in January from the IRA account.2009-10-21 13:59, By: torp, IP: []
L2: 401k rollover to IRAThis cannot be done. An IRA is considered a different type of retirement plan than a defined contribution 401k plan. Transferring funds to a different type of retirement plan busts the 72t plan.401k plans do not provide much support for 72t plans, but you can still have a valid plan if you adhere to all the requirements. Since you turn 59.5 next year and you have already distributed well over 60 months from the plan, there are NO distributions required in 2010 prior to April. But your plan is STILL in force, so your options for 2010 and prior to April are limited. Wait to do the transfer until AFTER you turn 59.5 to avoid busting the plan and owing 7 years of retroactive penalties and interest. If you have highly appreciated employer stock left in the plan, reaching age 59.5 will also constitute a new triggering event, so you should check into any NUA potential for these shares after your plan ends.2009-10-21 18:32, By: Alan S., IP: []