When you are 59 ½, some 401(k) plans allow you to take an in-service distribution, which is a distribution from your current employer’s 401(k) plan that you can roll into an IRA. Generally, participants may take an in-service distribution in order to invest the assets in different funds, or broaden the beneficiary options of the account.
Please contact your plan administrator to see if your 401(k) plan offers in-service distributions, and your employer’s process for administering this distribution. It is important to consult IRS guidelines and/or a financial professional prior to initiating an in-service distribution.
This information has been provided by Betterment LLC, a registered investment advisor.
