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Asked 2/18/2009
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Closing a 401K Can I close my current 401K with my current employer and roll this money into a Rollover IRA. I do not like the investment options the plan offers and would like to roll it into a FDIC insured CD's. I'm 61 years old
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Answer 1/5 - Submitted 2/19/2009
At your age, most plans allow you to withdraw or move the money through an In service withdrawal..
However CD's are not considered a qualified retirement plan.. so it would not be considered a rollover, but a distribution which will be taxable. If you move it to an IRA.. it would be considered a rollover.
Answer 2/5 - Submitted 2/19/2009
You can rollover to an IRA, and you can buy CDs within some IRAs. You can even have an IRA brokerage account. However, if you are still working for your employer, you do not have to take any distributions at this time. If you were to put the money in an IRA you would have to start taking minimum required distributions (MRD) every year because you are over 59.5 years old.
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