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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75378  
Subject: Re: 401(k) Rolling? Date: 10/11/2007 2:00 PM
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I'd like to use part of the money to invest on my own, as I've done very well with researching via fool.com and a couple of the newsletters. Does anyone know if I can roll part of it to my E*Trade account or if I'd have to move the whole thing?

A partial rollover is allowed by law, but not required. Step one is contacting your plan adminitrator and finding out what your plan's rules are.

If you decide to do a rollover, keep in mind the old adage to "measure twice, cut once." For example, it must be done as a direct transfer from the 401(k) to the IRA custodian without your ever taking possession of the money. Otherwise the 401(k) must withhold 20% for Federal income tax.

IRS Publications 575 and 590 have the details, and once you've settled on a plan of action, feel free to run it by us here for a sanity check.

Phil
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