I am approx 1 – 2 years from retirement with a current balance of $166,000 in a 401K. I want to roll this over into an IRA while still actively participating in my 401K plan. The money I roll over has to be safe. I was thinking of opening the IRA with Vanguard since that is where my 401K money is. What do you suggest?
Terry Says: Your company won’t let your roll over your IRA while you are still employed. But you can switch to the most conservative option within the plan as you approach retirement. And it’s a good idea to start researching your options for after you retire. Vanguard has a new program for those opening accounts with at least $50,000. The give you not only investing, but withdrawal advice. You can start researching that now — but you’d have to wait until you leave the company to roll your 40l(k) plan.