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Frequently Asked Question

Our company is getting a new 401k plan. We would like to take what we have in our old 401k and roll them into an IRA so we can invest it ourselves. We have been told that we can not do this and the lump sum must be rolled over into the new plan. Is this true?

Answer: Yes, the information you were provided is correct. The regulations governing 401k plans do not allow you rollover your assets into an IRA unless you have terminated employment. So, short of quitting or being terminated, you will have to keep your funds in the new 401k.

This is for educational purposes only. The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.


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