[quote=clearfund]SK – There is no confusion relating to the ability to roll over all funds from an employer plan to a new IRA after you have moved on (100% can do that)
Where there is little clear direction is what can be rolled over while you are still employed. This is the reason my response was to ask precise questions of your plan administrator. I’ve seen restrictions of many kinds while still employed.
Unfortunately I’ve never heard a clear yes/no answer. Hopefully there is someone out there who knows.[/quote]
Generally, normal plan distributions require some sort of triggering event, like termination of employment or death. Distributions while still employed normally fall into three categories. The first two, hardship and corrections of elective employee contributions in excess of qualified amounts are not elible for rollover. The third, would distributions on attainment of normal retirement age. This would be the case where an employee reaches normal retirement age (by either 70 1/2 or earlier if so specified by the plan) but continues to work. If the distribution is in the form of a lump sum, it can be rolled over. If it is part of a series of periodic payments, it can’t be rolled over.
Other distributions while still employed are rare. (The most common would be upon termination of a plan.) There may be some 401K type plans which allow for withdrawal of employee contributions prior to termination (other than loans), though I’ve never seen that to be the case. (There may even be an ERISA prohibition against it, I’m not really sure.) Loans which are not repaid and become delinquent can be considered distributions and are not elible for rollover.
