How Do You Transfer A 401K To An IRA?
The average person moves from job to job several times during her professional life. The federal government and financial services firms have recognized this transitory nature by allowing workers to transfer funds from one retirement fund to another. You can transfer your 401k earnings to an IRA as you head to the next aspect of your career. Initiate a 401k transfer as you reach a benefit event during your professional life. The Internal Revenue Service defines a benefit event as retirement, new employment or achieving the age of 59 years and 6 months old. You must pass this threshold to consider transferring money to your IRA. Fill out a 401k election form in order to move funds to your individual retirement account. This form allows you to inform your employer about the next destination and amount of money to be transferred from your 401k funds. Review your IRA trustee’s limitations on transfers from a 401k account. These limitations may include a ceiling for the contribution amount
