Alex Daisy Posted September 11, 2009 Posted September 11, 2009 A participant is still working with the company and has not met the age requirmenmt for an in service distribution. They want to Rollover their account from the 401k into a Roth IRA , becauase they think Roth IRA offers better investment selections. Is this Allowed?
R. Butler Posted September 11, 2009 Posted September 11, 2009 I think you anwers your own question -- A participant is still working with the company and has not met the age requirmenmt for an in service distribution.
Alex Daisy Posted September 11, 2009 Author Posted September 11, 2009 I think you anwers your own question --A participant is still working with the company and has not met the age requirmenmt for an in service distribution. I agree, but the participant agrees those are the rules for a traditional 401k but with the roth it is different due to it being after tax dollars… Any help here?
Lou S. Posted September 11, 2009 Posted September 11, 2009 Roth-401(k) are still 401(k) and subject to the same withdrawal restrictions as traditional-401(k). The only difference is the taxation on distribution.
R. Butler Posted September 11, 2009 Posted September 11, 2009 I think you anwers your own question --A participant is still working with the company and has not met the age requirmenmt for an in service distribution. I agree, but the participant agrees those are the rules for a traditional 401k but with the roth it is different due to it being after tax dollars… Any help here? Any money in the plan whether it be pre-tax, roth, match, profit sharing, rollover, etc. is subject to the rules of the plan. The Summary Plan Description will address when in-service distributions are allowed.
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