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My question is similar to this one, but slightly different:

Can I roll over a 401k with my current employer into an IRA?

According to that question above, it's not possible for somebody my age (28) to rollover a 401(k) to an IRA without actually leaving my job.

However, my company is changing plans in a few weeks (Nationwide to John Hancock) and I'm wondering if there is any loophole here I can exploit to get my money out of the plan and into an IRA. In other words, since Nationwide already has to transfer my money somewhere, is it possible to redirect to it to the tax-advantaged account of my choosing?

Thoughts?

Although I will lose a very small amount of unvested employer match, the expense ratios on both our old plan and new plan are just way too high and the selections are way too small, especially with the economic uncertainty we're facing in the US right now.

  • Why the same question 3 times? – Cloud Apr 16 '18 at 10:45
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No, sorry. A change of 401(k) administrator is not an out, otherwise many would flee a bad plan. I'd suggest you only deposit up to the match, but use an IRA if you'd like to save more. A plan with high fees can easily negate the tax benefits and then some.

  • Thanks for the reply. We have a briefing on the new plan next week and I'll ask the same question to them. If they give me the same answer then I'll accept yours! – Mark E. Haase Jun 10 '11 at 15:48
  • Fair enough. Stranger things have happened. This is one where I'm 99% sure of my answer. Let us know! – JTP - Apologise to Monica Jun 10 '11 at 15:55
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    Boooo. The answer is definitively no, based on my company's 401k rules. The transfer between management companies is a direct bulk transfer (everybody's money moved over in a single transaction). – Mark E. Haase Jun 13 '11 at 17:01
  • I feel your pain. My company spun us out, so our division was a new company. No chance to move 401(k) for me either. – JTP - Apologise to Monica Jun 13 '11 at 18:13
  • I was part of a company that was sold from one parent company to another, and we were allowed to roll over our 401(k)s from the first parent. The downside was that we lost the unvested portion of the first parent's company match. – stannius Mar 20 '15 at 17:28

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