401(k) to IRA Before Retirement? The Pros, Cons, and Mistakes to Avoid
Thu Jan 29 2026
401(k) to IRA Before Retirement? The Pros /Cons/ and Mistakes to Avoid
Work with me: https://ellisretirement.com/get-started/
In this episode, I want to clear up one of the biggest misconceptions I hear from people who are in the pre-retirement stage.
If you're over 59½ and still working, you may have been told, or assumed, that you're stuck in your 401(k) until you officially retire.
I hear this all the time, and the truth is: that's not always the case.
In this video, I walk through what's called an in-service distribution, an IRS rule that may allow you to move part or even all of your 401(k) into an IRA without triggering taxes or penalties, as long as your plan allows it.
Here's what I cover:
- What an in-service distribution actually is
- Who qualifies and why age 59½ matters
- How to find out if your 401(k) plan allows in-service distributions
- Why flexibility and customization become more important as you get closer to retirement
- The difference between managing money inside a 401(k) versus an IRA
- Investment and tax-planning strategies that may be available inside an IRA
- What you should consider before making a move, including fees and costs
This isn't a strategy for everyone. I don't believe there's a single "right" answer that applies to all people. The goal here is to understand your options, weigh the benefits and considerations, and decide what actually makes sense for your situation.
If you're getting closer to retirement and feeling limited by the investment options or flexibility inside your 401(k), this conversation may help you think differently about what's possible.
👉 If this feels overwhelming or you're not sure whether this applies to you, I'd be happy to talk it through. You can click the link above, answer a few quick questions, and book time directly on my calendar. No pressure, no sales tactics, just a conversation to see if it makes sense to go deeper.
👍 If you found this helpful, feel free to share it with a friend
🔔 Subscribe for more retirement planning insights
🌐 Learn more about us at ellisretirement.com
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401(k) to IRA Before Retirement? The Pros /Cons/ and Mistakes to Avoid Work with me: https://ellisretirement.com/get-started/ In this episode, I want to clear up one of the biggest misconceptions I hear from people who are in the pre-retirement stage. If you're over 59½ and still working, you may have been told, or assumed, that you're stuck in your 401(k) until you officially retire. I hear this all the time, and the truth is: that's not always the case. In this video, I walk through what's called an in-service distribution, an IRS rule that may allow you to move part or even all of your 401(k) into an IRA without triggering taxes or penalties, as long as your plan allows it. Here's what I cover: - What an in-service distribution actually is - Who qualifies and why age 59½ matters - How to find out if your 401(k) plan allows in-service distributions - Why flexibility and customization become more important as you get closer to retirement - The difference between managing money inside a 401(k) versus an IRA - Investment and tax-planning strategies that may be available inside an IRA - What you should consider before making a move, including fees and costs This isn't a strategy for everyone. I don't believe there's a single "right" answer that applies to all people. The goal here is to understand your options, weigh the benefits and considerations, and decide what actually makes sense for your situation. If you're getting closer to retirement and feeling limited by the investment options or flexibility inside your 401(k), this conversation may help you think differently about what's possible. 👉 If this feels overwhelming or you're not sure whether this applies to you, I'd be happy to talk it through. You can click the link above, answer a few quick questions, and book time directly on my calendar. No pressure, no sales tactics, just a conversation to see if it makes sense to go deeper. 👍 If you found this helpful, feel free to share it with a friend 🔔 Subscribe for more retirement planning insights 🌐 Learn more about us at ellisretirement.com 401k to IRA rollover, IRA vs 401k, retirement account rollover, pre-retirement financial planning, 401k rollover strategy, IRA benefits and risks, retirement savings options, tax efficient rollover, retirement planning mistakes, 401k management tips, IRA pros and cons, financial advisor advice, retirement account transfer, retirement investment strategy, 401k vs IRA comparison, retirement tax planning, retirement savings strategy, avoid rollover mistakes, retirement portfolio planning, wealth management #401k #IRA #RetirementPlanning #401kRollover #FinancialPlanning #RetirementSavings #TaxPlanning #RolloverStrategy #MoneyManagement #FinancialAdvisor #WealthManagement #RetirementTips #Investing #SmartInvesting #RetirementStrategy #RetirementAccount #PreRetirementPlanning #FinanceEducation #AvoidMistakes #InvestmentStrategy #RetirementMoney #RetirementFinance #RetirementAdvice #FinanceTips #MoneyTips