IRA Rollover

Posts Tagged ‘401k Rollover’

Question: Question about Deferred Compensation rollover to an IRA?

I am a state employee and currently participate in the deferred compensation program. I have a question about rollovers in the event that I leave my current state position. If I leave my current position, what are my rollover options? Can I move this money directly into an IRA? If I move the money into an IRA, is the money sent directly from my Nationwide deferred compensation account into the IRA or is the money sent to me first, then I deposit the money into an IRA at my discretion? If I chose to have the money sent to me and then move the money into an IRA, how long do I have to deposit the money into an IRA before I have to pay a penalty on the transferred money? And if the money is sent directly to me, how long does it take to receive the money after I have closed out the Nationwide deferred compensation account?

Answer: The documents on your plan will spell this out in gory detail.

401(k) plans, I believe, must allow you to do a direct rollover to avoid the 20% withholding. I know people with old 403(b) plans in academia that do not allow fro any type of rollover. (They just updated their plan documents from 1950s.) 457 Plans have their own rules. You need to look at your plan documents which are probably available online.

Am I wrong about price action (Also IRA rollover)