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I may leave my current employer and will not be immediately starting another job. I do not want to leave my 401K where it is at. Can I have the funds sent to me and roll into a private IRA or is there a time limit before I need to decide where to roll it into?

Submitted: 859 days and 21 hours ago.
Category: Finance
Value: $9
Status: AWAITING EXPERT REPLY
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Minneapolis, Minnesota

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Accepted Answer

Daer XXXXX,

You would have to check your plan documents to see if your particular plan has time limit for withdrawing and rollilng over your account after termination of the job.

Other than that, you have 60 days after you take the distribution to roll it over into another qualified retirment account including an IRA to avoid penalties.

You need to set up the rollover account first and then work with the plan administrator to make sure they treat the distribution as a rollover. ELSE, they will charge the penalty anyway, and you will have to take credit at tax time and be made whole through the end of year tax filing process.

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Expert: Ed Johnson
Pos. Feedback: 100.0 %
Accepts: 
Answered: 7/17/2007

HR & Business Operati&ons C&onsultant

Central Michigan University, MSA Candidate; Global Compensation Operations Mngr; AA Degree Lib Arts

858 days and 10 hours ago.

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Reply to Ed Johnson's Post: what is the penalty?

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