Can I move my 401K after separation date from a previous employer?

[marriedwithfear]

What is the name of your state (only U.S. law)? CA

I have a 401K with an employer, but thinking of leaving it with them for now. In 2 or 3 years from now, if I change my mind and decide I want to roll it over to an IRA, or to a new employer's plan, would I have the option to do so?

 

[cbg]

You can ONLY move your 401(k) after separation from your employer. But you'll have to ask your plan administrator whether you have to do it within any given period or not. If you worked for my employer, you could leave it with us for as long as you liked and not move it for 20 years if that's what you decide to do, but I've worked with plans that require you to roll it over within 90 days.

So talk to your plan administrator. They'll know.

 

[cbg]

On re-reading my answer I want to make sure the answer is clear.

As long as you are still employed with the employer with whom you had the 401(k), you do not have the option of moving it. (Possible exception if you are over the age of 59 and a half.)

After you leave the employer, the plan document will determine how long you have to do a roll over, which might be as little as 90 days or might be as long as you want. It could be anywhere in between.

 

[marriedwithfear]

On re-reading my answer I want to make sure the answer is clear.

As long as you are still employed with the employer with whom you had the 401(k), you do not have the option of moving it. (Possible exception if you are over the age of 59 and a half.)

After you leave the employer, the plan document will determine how long you have to do a roll over, which might be as little as 90 days or might be as long as you want. It could be anywhere in between.

Right. I guess my question is more on that last statement. If I choose to leave it (no roll over), does that mean I am leaving it forever? Or is there a future opportunity to move it (i.e. I separate from another employer). Things could change in 5 years or 10 years where I may no longer want it to stay with a former employer.

 

[cbg]

No. There is never going to be a plan document that says if you leave it for x time you can never roll it over. But what I'm trying to say is that you may not have the option of leaving it. You may be required to roll it over. I can guarantee you that you will have the option of rolling it over, no matter what. I cannot guarantee you that you will have unlimited time to do so.

However, as I said, you CANNOT roll it over as long as you are still employed by the employer whose 401(k) it is. ONLY after you leave.

 

[Taxing Matters]

What is the name of your state (only U.S. law)? CA

I have a 401K

And just as an aside, it is a 401(k) plan, not 401K, 401k, or any of the other variations I've seen of it. The plans are ones that qualify under Internal Revenue Code (IRC) section 401(k). As the slogan from that one series of public interest ads goes, now you know.