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    pogden's Avatar
    pogden Posts: 1, Reputation: 1
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    #1

    Mar 30, 2012, 01:37 PM
    401K Retirement Distributions
    I would like to take a portion of my 401k as a lump sum and put the remainder in an IRA, is that an option or do I have to take it all in a lump sum or roll all of it over?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Mar 30, 2012, 05:21 PM
    Hoe old are you and why are you getting distribution?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Mar 31, 2012, 05:18 PM
    Assuming you are no longer an active employee at the company where your 401(k) is located - yes, it's possible to do as you suggest. Be aware that any withdrawal is taxed as ordinary income, and you also have the 10% early withdrawal penalty if you are under age 55. The best way to do this is first take a distribution for the amount you want, and then after that do a direct rolloverof the remainder from the 401(k) to the IRA. This will avoid taxes being withheld on the amount that you roll over.
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