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sabfpp
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Looking for income while saving for a legacy!
  • Stuck With Money In My Company's 401k; Is There A Way Out? 1 comment
    Apr 29, 2012 12:12 PM

    The company that I work for had a great "Stable Value" fund. It was paying in the neighborhood of 2.68% with zero risk.

    I moved a large sum of money into this 401k from a personal IRA through a rollover.

    And for a while I enjoyed risk free (or so I thought) yields.

    Then the company decided to cancel the "Stable Value" fund. Gone.

    It was replaced with a MMF and a Bond Fund. The MMF yields practically zero and the Bond Fund is a time bomb as soon as any interest ticks up.

    So I wanted to "roll out" my personal funds back into my IRA.

    And that resulted in an answer of NO from anyone and everyone associated with the 401k.

    It's not illegal as far as I know. Nor is it against any rule other than the rule that the 401k itself created.

    So...

    First I thought this would be interesting to let people know that my inquiries have resulted in "you cannot take the money back out. Period."

    But then I thought, maybe someone has been through this and FOUND a way out.

    So a mild caveat and a question to any readers.

    Many thanks!

    Themes: 401k Trap
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  • lk40864
    , contributor
    Comment (1) | Send Message
     
    Consider doing a google search for "Substantially equal periodic payments" (also known as 72(t) distribution)
    6 May 2013, 11:29 PM Reply Like
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