Many people don’t know this but if your employer has a retirement plan, like your 401(k), then you may be able to transfer your retirement savings to another plan. An in-service distribution will allow you to have greater control of your retirement assets. Come and visit our website search it on gold ira definition you can learn more.
Many people don’t realize this.Guest Posting. If your employer has a retirement plan, such as your 401k, you don’t need to keep all of your retirement savings there. You can transfer them to an IRA when you move jobs or retire. However, you might be able take an in service distribution and rollover your retirement funds from the employer-sponsored plan to a IRA.
An in-service distribution can have many benefits. In-service distribution will give you greater control over your retirement funds and allow you to manage them before you make a decision to retire or change jobs. You will have access to all the investments available with an in-service delivery, as opposed to a 401k where you don’t have any retirement savings and can only choose from a few investment options. If you transfer your assets directly to an IRA, you will be exempt from any tax penalties or the mandatory 20% IRS withholding tax.
Determine if you’re eligible
You’ll first need to check if your employer-sponsored retirement plan allows for in-service distributions. To determine if you qualify for in-service, you will need to read the terms of your retirement plans. Your 401(k), plan administrator can provide quick assistance if you find it difficult to read through the plan documents.