401k, 403b, TSP, 457

Having co-founded iTrustCapital, which helps clients take advantage of the incredible tax benefits of IRAs to invest in alternative assets like Cryptocurrency and Precious Metals, one of the most common questions I get asked is– Can I rollover my current employer plan into an IRA?

My answer is always MAYBE.    

If you no longer work for the employer, the answer is YES!

If you still work for the employer and you are over the age of 59.5, the answer is YES!

IF you still work for the employer and you are under the age of 59.5, the answer is likely no.

General rollover process from a Past Employer.

Step 1: Open An Account. 

This usually will take around 10-15 minutes, including going through our compliance checks, putting your beneficiaries on file and confirming information from your current IRA provider.

Step 2: Digital Signature.

After you complete the full setup, our team will review your new account and send you a Digital Document within 1-3 business days. This will arrive by email and you simply must sign it digitally, no hassles!

Step 3Funding Instructions.

Our processing team will prepare your Funding Instructions, which will be emailed to you within an additional 1-3 business days. You will be required to carefully read through the instructions and follow them step by step. They will require you to reach out to your employer plan and initiate the rollover, everything you need will be included in the funding instructions email.

Step 4: Funding Sent. 

After you speak with your employer plan, you will find that they will perform one of the following 3 options.

  1. They will send the funds via Bank Wire Transfer to iTrust Custodial Services.
  2. They will send a Physical Check to iTrust Custodial Services.
  3. They will send a Physical Check to you, which you will forward to iTrust Custodial Services.

 

 

Please Note: You are may be able to perform partial rollover or a whole rollover. You can always call your employer plan and ask.

 

Still Employed?

The challenge is when you are still at the job where your plan resides. It is less likely you will be able to do a rollover until you leave the job, but there are exceptions.

You may qualify for what is known as an In-Service Rollover. An In-Service Rollover means you can roll some or, in rare circumstances, all of your current accounts into an IRA even though you still are employed by the company.

General In-Service Rollover requirements

  1. You are over the age of 59 ½. 
  2. You are fully vested with the company. (Typically 6-8 yrs employed)

One more way

  1. If you rolled funds from a past employer plan into your current employer plan, you will likely be able to roll the same amount to an IRA at any time. The age and vesting requirements don’t apply in this case.

From my 10+ years of experience working with retirement accounts, the three points listed above hold true on almost every time. However, occasionally even I get surprised, and some can rollover funds from a current employer who does not meet the above criteria. So I always recommend my clients call their plan administrator and simply ask– Do I qualify for an In-Service Rollover? If they say yes, you are in business and can begin the rollover process listed above. And if not, you can always quit your job! Kidding, of course.  

 

Ready to get started? 

Use our Getting Started Guide.

 

 

Disclaimer: I am not a licensed financial or tax advisor — consult with a financial professional to determine what is best for you.

 

Still have questions? Read our FAQ or schedule a call here.