No. of Recommendations: 0
Is it possible to rollover funds into a traditional IRA even if you are still employed at the company funding the plan?

The law does not prohibit it, but almost all 401(k) plans do not allow it.

Once separated from service, you can roll it into a "rollover IRA" (a Traidtional IRA funded with money transferred there from a 401(k), 403(b), or similar plan). If you do this, arrange for a "custodian-to-custodian transfer" so you won't have to worry about any 20% withholding.

If you are taking a "leave of absence" from your current employer instead of quitting, I don't know how that would affect your ability to transfer your 401(k) to an IRA.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.