Many people don’t know that if you participate in an employer-sponsored retirement plan like your 401(k), you do not need to lock all of your retirement savings. You can wait until you move jobs or retire to rollover the funds. In-service distributions will give you more control over your retirement funds. Visit our website and learn more about gold ira distribution.
Guest Posting: If you’re currently enrolled in a company-sponsored retirement plan like your 401(k), you don’t have to wait for your retirement savings to be transferred to an IRA. In-service distributions may allow you to transfer your retirement savings from your employer-sponsored plan to an IRA.
An in-service distribution offers many benefits. An in-service distribution will allow you to have greater control over your retirement assets. You can also manage them prior to you decide to retire or change jobs. An in-service distribution will allow you to access a vast array of investments, which is not possible with a traditional 401(k). Rolling your assets directly into an IRA will allow you to avoid penalties and the 20% IRS withholding taxes on your in-service distributions.
Determine if you’re eligible
To determine if you are allowed to receive in-service payments under your employer-sponsored pension plan, first check. Your retirement plan terms should outline your eligibility requirements. They can vary greatly between plans so make sure to review your plan documents to determine if you are eligible for in-service payments. You can contact your 401k administrator for quick answers if your plan documents seem overwhelming.