Frequently Asked Questions
Retirement Rollovers
Self-Employed 401(k) Loans
Contribution Limits
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Some tax-exempt employers may find that the new 403(b) regulations will increase the paperwork, cost of administration, and potential fiduciary liabilities associated with maintaining a 403(b) plan. It may make sense for especially the smaller non-profits to look into switching from a 403(b) to a 401(k) plan. For more information see Choosing between a 401(k) and 403(b) retirement plan

How long does it take to set up an account?
Is there a set up fee?
How long does it take for a rollover?
What is the maximum I can borrow?
How often can I borrow from my account?
What is the interest rate on the loan?
How much time do I have to repay the loan?
What happens if I miss a payment?
How to Do a Rollover
401(k) Plans
Government Plans
401(k) Plans

Why did my former employer send me my 401(k) account balance without my asking for it?
Your old employer can force a distribution upon you if your retirement account balance is less than $5,000.

Why would I want to rollover my 401(k) funds left with my previous employer?

Greater control and more investment choices are generally the reason that retirement plan participants roll over their account balances. You may have other reasons, as well.

How do I convert my 401(k) account to a Roth IRA?
A Roth IRA conversion is a two-step process. You cannot rollover your 401(k) funds directly to a Roth IRA. First, you must do a Rollover IRA. After that, you can transfer your Rollover IRA funds, called a conversion, to a Roth IRA. Caution: You must pay taxes on any money that goes into a Roth IRA

Can my employer block my  401(k) withdrawal while I am still employed there?
Yes. One of these events must occur before you are allowed to take a withdrawl out of a 401(k) com: a layoff, illness, disability, retirement, death, or severance from employment. For more information on the particulars of your plan, refer to your copy of the "Summary Plan Description (SPD)" that you should have received when you enrolled in the plan. If you don't have an SPD request a copy from your personnel department.

Can I withdraw my 401(k) account when I leave a company?
Yes. Your employee contributions are always yours and can go with you when you leave your company. Your employer's contributions, however, may not be yours to take with you. Some employers give you ownership, called vesting, of their contributions immediately. Others phase in your ownership to their contributions over several years. Special circumstances such as death, disability or the plan's termination usually give you 100% vesting at the time of the event. So, your plans' vesting schedule will determine how much of your employer's contributions you can take with you when you leave that employer.

Can I borrow against my 401(k) account after I leave my employer?
Most plans will not allow borrowing from your 401k account after you leave the company. Contact your old employer's Human Resources or Benefits Department and ask them that question. If you have a business you may qualify for a Solo-401K with loan feature.
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