I currently have a 401(k) plan from my employer at Institution A. I also have a rollover IRA at Institution A (with funds from prior employers' plans).
My employer has been acquired, and have announced the termination of that plan (but have not yet moved the funds). Our pre-tax contributions are now going into a new 401(k) at Institution B, within the new parent company's existing plan.
Before the blackout date hits, I am considering rolling over the funds from the 401(k) at Institution A into the rollover IRA at Institution A. Otherwise, those investments will be frozen for about a month and transferred into the new 401(k) at Institution B.
There are a few reasons I'm considering it, one being prior history with the two institutions.
Is there anything preventing me from rolling over while still working for the sponsoring employer? Are there any concerns, e.g. for taxation?
I realize this question may be a duplicate:
I see at least two differences:
- That question is 12 years old. Tax laws change.
- This is not merely a change of plan administrator. My plan at Institution A is being terminated.