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Subject:  Re: 401k distribution fee Date:  2/26/2021  11:49 AM
Author:  CuriousQ Number:  101479 of 102724

I just got an updated fee schedule for the 401k through my job. It has a $125 participant distribution fee. I asked our HR person what that meant, have not heard back yet. But, is it typical to have a fee like that on any distribution from a 401k?

I monitored the amount in my 401k that I could move to an IRA via an "in service distribution." For a long time, that amount was less than the full amount of my 401k balance. At age 59.5, I had the full balance available to me. At age 60, I did move some of the money to another custodian, and did a trustee-to-trustee transfer from 401k to an IRA.

There were no fees. Fidelity is the 401k custodian, but not the IRA custodian. (Reason for mentioning--Some places may waive fees to keep the money in their "care.")
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