Rollover Ira Schwab
July 25th, 2011
Question: My mom has a 401k at her current employer and is no longer contributing. She wants to rollover to an IRA.?
-She will be 65 in February.
-She is no longer contributing to the plan.
-There is NO company matching.
- The plan is held with Schwab but administered by a third party who set up the accounts and such. This “advisor” charges ridiculous fees even though the guy does nothing with her account (no advice, no fund movements etc.).
- I understand that some plans may not permit rollovers, especially of pretax assets in the account, but what if she’s over 59 1/2 or what about once she reaches 65?
Answer: Some plans allow inservice distributions of all amounts once participants reach age 59 1/2. Typically it’s plans where the owner is a little older and thinks THEY might need access to their plan’s money. Have your mom check her Summary Plan Description to see what it says about withdrawals.
American Fortress Financial
Posted in IRA Rollovers | 
Tags: account, ira, retirement, rollover ira, rollover ira schwab, schwab, sep, traditional | 
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