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 support@betterment.com 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.
