Can my wife rollover her 401(k) to an IRA before she is 59.5 years old, even though has a disability retirement account?

My wife has a disability retirement account and a substantial 401(k) retirement account. Is it possible for her to roll over her 401(k) account to an IRA now, rather than leaving it alone until she is 59.5 years old, even though she already has a disability retirement account?

Retirement, 401(k), IRAs, Disability Insurance
Answers
Sort By:
Most Helpful
January 2018
0% of people found this answer helpful

Your wife's opportunity to roll the 401(k) to an IRA depends on whether she is still employed by the plan sponsor (the company that offered the 401(k)) or if the plan allows for "in service" rollovers.  It sounds as though you are saying that she is now receiving a disability income benefit, which may imply that she has left that employer; if your wife no longer works for the plan sponsor, she should have the option to roll the plan assets out to an IRA or other qualified retirement plan.

Whether your wife SHOULD roll her balance out to an IRA is a different question.  It is worth taking some time to understand the relative costs, investment options, and other benefits of the one type of account versus the other before initiating the rollover.

January 2018
January 2018
January 2018
January 2018