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Cross posted on the LBYM board.

http://boards.fool.com/Message.asp?mid=28657009

On another board someone was mentioning that they were stuck in a 401K with absurdly high fees.

They do not publicize it, but many 401K plans allow what is called in H.R.-speak an “inservice non hardship withdrawal” (google this). This allows you to roll your 401k money out to an IRA without any taxes or penalty typically when your age is 59.5 and while you are still working there.

Not all plans have this but if you can do this then it would get you away from the high fees.

You may also be able to do this with other pension plans, like a cash balance plan left over from a discontinued traditional pension plan.

The average clerk in the H.R. department will confuse this with a “hardship withdrawal” which is different and would generate penalties and taxes so you will need to make sure that it is being processed correctly. If they say your plan does not allow it, they may just be saying that they don’t know about it, check with the company that manages your plan and try to get a response in writing.

Greg
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