If a person want's to transfer his/her 401K money to an external traditional IRA account (say Chase) while he is still employed at the company, will his company permit that? The employee might wanna continue to contribute to his 401K to get the company's matching amount and roll over some amount every year to the external traditional IRA account. Is this something allowed?
There are many things that an employer can customize about its 401(k) plan, and the feature to allow participants to rollover funds out of the plan while still employed is one of those things. You’ll need to ask your company’s HR department to find out if this is allowed under your 401(k) plan’s rules.