Yes , be sure it goes directly from one instution to another and not directly to
you , otherwise you will be taxed , its pretty easy , ask the company you
want to move the money into how.

You're going to have to check with the plan administrators. As long as you're still working, not all plans will allow you to roll your funds out.

An alternate method of diversifying would be to drop your 401(k) contributions to the percent that your company matches, then use the extra take-home pay to fund an IRA. (This depends on your total family income.)

I agree with Reader that you will have to check with your plan administrator or at least look through the plan document. This would be considered a "non-hardship, in-service" withdrawal and not all plans offer them. Also, I believe you need to be 591/2 in order to utilize this option.

In regards to your second question, I believe this can be a good move. Most companies limit the investment options inside their 401(k) plans. By rolling a portion of what you have accumulated to an IRA, you will open up many more options to invest your money.

Genarlly no. ONly your 401K plan allows in-service withdrawal. It is very unlikely. You can always check with your HR or plan administrator.

Thanks to all who commented!!!