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Greetings, M, and welcome. You wrote:

<<About a year ago I quit my job to start my own company. My 401k account has both stock of the company I used to work for, as well as mutual funds offered by the custodian. I'd like to take all of the funds in that 401k account and move them to an IRA that I control with an on-line broker.

Can someone tell me what the restrictions are on this type of movement. Is it as simple as telling the custodian of my 401k to transfer the funds to my on-line broker?>>

Your plan administrator and your chosen broker can walk you through the steps for a direct transfer of the money. With the company shares, you will probably have the option of taking those shares and paying ordianry income taxes on their cost to you (nothing on the gain until sold, and then only at long-term capital gains rates) or transferring them to the IRA along with any cash. If you are younger than age 59 1/2 when you take shares, you will have to pay the 10% penalty on their basis as an early withdrawal penalty. Even so, that still may be worth it becuase when it comes to the shares, you might want to take them. For details, see my article "Taking Stock" at

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