Rollover Self employed 401k but leave account open?

Discussion in 'Professional Trading' started by SideShowBob, Mar 23, 2010.

  1. Does anyone know off the top of your head if I can rollover my self-employed 401k (currently with Fidelity) to an IRA (with IB) but leave the 401k open for future contributions?
  2. GTS


    Interesting questions - I'm in the same boat (SE401k with Fidelity).

    I did some Googling and from what I can tell it depends on the plan.

    This implies you can't:

    But in this thread someone said they did (a Fidelity 401k not necessarily a SE401k though):

    However it wasn't clear in that thread if that was done while 'BarbK' was still employed or not:

    I checked the Fidelity SE401k plan documents and they do specifically allow rollovers to IRA's ("7.10. Direct Rollover of Distributions") but its not clear to me if you can take such a distribution without meeting one of the std conditions, e.g.

    (1) upon attainment of the Participant’s Normal Retirement Age (whether or not employment has terminated);
    (2) upon the death of the Participant;
    (3) upon the Disability of the Participant; or
    (4) upon the termination of the Participant’s employment

    Sounds like asking Fidelity would be the best bet. If you find out please post back in this thread.
  3. Yes was thinking I needed to contact Fidelity, will do so and hopefully not be passed around to too many people before I get an answer....
  4. Fidelity just reiterated your points, you need to meet one of the standard conditions to terminate the plan. So unless I fold my LLC and then re-create it again I'm stuck (which I might consider if I had more cash in it).
  5. GTS


    Thanks for the update/info.
  6. I actually have some real decent profits in the LLC this year, so I am considering giving half my 50% stake in the LLC to my wife (leaving us each with 25%) and allowing her to contribute her part of the gains to a 401k (so we could each contribute instead of just me). I don't see why this wouldn't be legal, but has anyone done this or could weigh in?

    Maybe I should call accountemps?