Distributions

[Jilliandiz]

I'm an active employee with a 401(k) account with my current employer. Can I rollover my 401k account while I'm still employeed into an IRA? If so, can I then take a distribution from the new IRA? I am under 59 1/2 years old.

[stephen]

There is no inservice distribution rollover allowed that I know of from a 401(k) plan. You need a distributable event such as termination of employment before you can take a distribution of salary deferrals.

[R. Butler]

The question is really depends on the plan provisions. You need to review your Summary Plan Description or contact the plan's administrator. Generally you won't be able to get to employee deferral money prior to age 59 1/2; you may be able to receive a distribution from other contribution sources.

[MWeddell]

Hardship distributions are not eligible for rollover but most other types of in-service distributions are eligible for rollover. As indicated by the last post, though, under most circumstances plans aren't allowed to distribute the elective deferral account until an active employee attains age 59½.