4 Responses to “How can I move my 401k money from my employer without leaving my job?”

  1. ineedhelpwithmyselfimage says:

    You really cannot move it without taxes/penalties.
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  2. src50 says:

    Generally, you can’t until you terminate employment. You can start a separate IRA.
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  3. Gary says:

    You can’t move your 401(k) unless you don’t work for that employer. You have options though…

    Since your employer doesn’t contribute or gives matches to your 401(k), just stop contributing to the 401(k) and use the money that was to go to the 401(k) and open a traditional IRA account or Roth IRA.

    By moving your contributions to a traditional IRA account, you will get a tax write off. Plus, you open your retirement account to more options that are available to you. Downside is that when you start to withdraw at 59.5, you have to pay taxes.

    Another option you can do is open a ROTH IRA. You’re using after tax dollars to fund this account, so you won’t get taxed when you withdraw at 59.5. With this account you can also do a one time withdraw up to $10,000 for your first home, but I won’t reccomend that. The downside is that you won’t able to get a tax write off with this account…This is probably the best retirement plan.
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  4. digdowndeepnseattle says:

    Talk to your employer to see if they will add that second institution to the menu of choices for your 401k. If they will then bonus for you. If they won’t…(likely result) then you’re simply out of luck. The plan sponsor decided where they money can be invested and it’s a real pain to let each employee decide where their money should go. The costs to administer the plan goes up significantly and doubtful that you would want to absorb the actual costs if you were the only one. Nor would you be happy with the results…think about it. If you have 30 employees and they each chose 30 different places to send their money….and they can switch whenever they want? Think of the liability your employer would be taking on to ensure that your money is going to the right spot? You would have to pay about $125 PER QUARTER to administer this plan.

    If your employer doesn’t contribute then you’re better off using the plan only to make sure that you maximize your contributions. First use your IRA up to the maximum of $5,000. Anything over that IRA amount should go into your 401k.
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