401(k) Inservice Taxes

[Guest Dan Kutzke]

Can a participant of a 401(k) age take an in service distribution and roll it to an IRA and not have the mandatory 20% withholding?

[TBob]

If by saying "401(k) age" you mean 59 1/2, then your answer is yes. The participant in question can roll the in-service distribution over as long as it is not a "hardship" distribution.

[saabraa]

Can a participant of a 401(k) age take an in service distribution and roll it to an IRA and not have the mandatory 20% withholding?

What do you mean by a "401(k) age?"

Are you, the presumed plan participant, a current employee of the 401k sponsor?

What does the written plan document say about in-service distributions? I predict most plan documents don't allow in service distributions. If a direct rollover/transfer is permissible and effected, you avoid withholding.

[Guest Dan Kutzke]

Can a participant of a 401(k) age take an in service distribution and roll it to an IRA and not have the mandatory 20% withholding?

What do you mean by a "401(k) age?"

Are you, the presumed plan participant, a current employee of the 401k sponsor?

What does the written plan document say about in-service distributions? I predict most plan documents don't allow in service distributions. If a direct rollover/transfer is permissible and effected, you avoid withholding.

I think I was interupted when I was typing - I meant "of a 401(k), age 65 ..." In service over 59 1/2 is allowed - I just was wondering if I could take the distribution, roll it to an IRA and not have the 20% withholding. Thanks!