E46Fanatics - View Single Post - Rolling over 401K & down payment savings
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Old 10-08-2017, 02:37 AM   #16
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Originally Posted by JJR4884 View Post
Not exactly sure what your situation is almost 2 months later but, are you still active with the company that holds your 401k?

If you are no longer employed, you cannot make eligible contributions so that $18k is out the window in the first place. If you are still there, what is the reason for moving assets over to your IRA? Do they not allow penalty free distributions for first time homebuyers? This is a common option for 401k plans, but not a default.

If no, then you have to see if they do allow you to take a distribution to roll over into your IRA. Some 401k's wouldn't really allow this until you are no longer working for the company. This eligibility also can be determined if you are fully vested in your 401k.

The issue with this is that 401k packages is like ordering dinner at a steak house. Everything is a la carte for the employer and the more options you have (vesting, distributions, hardship, rollovers, investment options, etc) are all additional costs to the company, so its hard to say exactly what you can and cannot do as it is up to your plan administrator to determine what options (expenses) the company wants to take on when opening up the plan for your company

Best thing to do (if you haven't already) is contact the 401k group and ask what options you have.

Also, as others have said before, your 401k and IRA distributions are completely different. If you are still contributing to your 401k (even pre-tax) you can still open an IRA and contribute up to $5500 a year ($6500 a year over the age of 50 1/2)
I am no longer employed by the company for the 401K I wanted to rollover. I actually haven't taken any action on that 401K and left it as is because it has been performing so well recently. I am 18% ROI YTD. Eventually I want to move it over *somewhere* though because I no longer have access to manage my mutual funds anymore. I thought rolling it over to an IRA because my current company is a private company and they recently started their 401K program so the mutual funds are still limited. However, I think I will just rollover my ex-company's 401K contributions into my current and continue rolling over as long as I am working for someone else. I also have a Roth IRA I am maxing out at my current company.
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