Can I transfer funds from a company 401k plan into a bank IRA plan without penalty?

Answer by  Gabriel (2146)

As a general rule, as long as you are transferring from a 401k to a retirement account, there should be no tax penalty. There maybe fees charged by the institutions to conduct the transfer, though.

Answer by  FinancialAdvice (22)

Yes, you can always rollover a 401K to an traditional IRA without paying taxes. If you roll it into a ROTH IRA you will pay income tax this year, but then you won't have to pay any tax when you withdraw the money upon retirement.

Answer by  Latin4 (11170)

As long as you are transferring the money into another account their won't be a penalty. But if you are withdrawing the money from the 401K and then taking it to the bank you will be charged a penalty.

Answer by  FunGuy (35)

If you are not working at that company anymore, you can ask for a direct rollover to an IRA. However if you ask the money to be paid directly to you, you will have to pay tax even if you later use the money to open an IRA.

Answer by  tamarawilhite (17883)

No, you cannot for a traditional IRA or Roth IRA. For both of these IRAs, you would have to pay taxes on the 401K money. The only exception is if it is a Roth 401K being moved to a Roth IRA.