In-Service Withdrawal from rollover

[smugs1104]

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

Hello. I have a 401k that both myself and my employer make contributions to. I also rolled a large amount of money into that account and it shows as a source titled "Rollover". I was told at one point that I would have access to that money if needed but I just submitted a distribution form for 30% of that money and was told by my employer that in-service withdrawals are not allowed until the age of 59 1/2. Can my employer deny a withdrawal from money that I rolled over?

 

[cbg]

They not only can, they must. Once the money is in the 401(k) it is subject to the rules of the plan. Under IRS regulations, the earliest you can make a withdrawal from the plan without incurring tax penalties is age 59 1/2.

 

[LdiJ]

For the sake of other people reading this thread. If you want flexibility with your retirement money never roll money from one employer's 401k plan into your next employer's 401k plan. Always roll money over into an IRA that you control.

 

[adjusterjack]

I was told at one point that I would have access to that money if needed

"I was told" = the most dangerous words in the English language.

Look into whether or not your 401(k) plan allows loans if you need money from it.

 

[cbg]

I am asking this for a reason. It won't get you an in-service withdrawal because that's controlled by law, not by your policy. But it may be at least a partial workaround for you.

What is the reason you are looking for the withdrawal? You can PM it to me if you don't want to put it in public. Depending on the reason, there's just a chance I may have a suggestion for you.