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What are the tax implications of moving my 401(k) into an IRA?

I want to move my 401(k) into an IRA. Then I want to cash out a portion of those funds. What kind of IRA would allow me to do this? What are the tax implications?

401(k), IRAs, Taxes
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May 2018

I saw many good answers and thought I would add what I did not see. 

Plan rules would determine whether the plan allows "in-service distributions," which is what you would be doing.  Usually, any money you would take out that has been rolled into the plan from another plan or from an IRA would NOT be considered an "in-service distribution," so that money can be accessed.

Have you considered a loan from your 401(k)?  This could be more cost effective than taking out money from your 401(k) or your IRA after you roll it over.  The taxes (and 10% penalty if you're under 59 1/2 can be high).  Many plans allow loans.  The interest woud be paid to yourself by yourself.  You might miss some investment gains, but it is worth considering.

Possible short-term loan.  If you need the money for a short period of time (e.g. you are waiting for a customer to pay $20k he owes) you can take money out of an IRA and pay no tax or penalty if you put it back within 60 days.  YOU can only do this once a year, but YOUR SPOUSE could also do this if you are married and give you 120 days. 

Again, I liked the answers I saw and thought you might benefit from a few additional thoughts on this topic.

Best of luck!

May 2018
May 2018
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May 2018