roth 401k rollover

[Guest LakeRick]

When a person has been reclassified as a temporary employee, thus they are no longer eligible for company benefits which includes losing eligiblity to receive the company's payment of 401K contributions, can they withdraw from 401k plan participation and rollover their 401k funds into a roth ira? The 401k plan administrator says that the newly classified temp employee can not withdraw since they are not 59.5 years of age so any information citations or references would be greatly appreciated.

[Guest saber]

You won't be able to roll it into a Roth IRA. It would have to go into a rollover IRA since Roth is after tax contributions whereas 401(k) currently is pretax contributions. You cannot mix the two.

As for withdrawing the money you should ask for a copy of the plan document and read the language on cashing out participants.

Generally plans want to cash out terminated participants. Not sure about the plan language in this case. But technically if they don't want to cash you out until 59.5 they don't have to IMO.

If they have cashout provisions it may be a different story.