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.
Of course, any old employer plan from a PAST job can be rolled into an IRA with no taxable event or penalties.
General rollover process from a PAST employer
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
One more way
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.
Disclaimer: I am not a licensed financial or tax advisor — consult with a financial professional to determine what is best for you.