The 60 day rule does not apply to Direct Rollovers, only to Indirect Rollovers (which are essentially a Cash Distribution from the 401(k) followed by a rollover to the IRA by the individual within 60 days) and Indirect (60 day) Rollovers from a 401(k) are not generally a good idea due to the 20% federal withholding requirement.
I ve heard advisors say if you will need some money soon just do withdrawal of that portion? Why go thru conversion process then take it out soon? Don't raise flag🚩 for IRS!
Thanks for your question, Vicente. You can change your 401(k) to another plan as long as your current employer plan will accept. If you hold any Net Unrealized Appreciation of previous or current employer stock, that is also something to consider. Thanks for watching!
Rule 1 Dont hire an advisor No disrespect, but 2x ive tried. 2x i lost. Last time I was approached, the firm showed me a return that would cost me $1,000 a month… and made 4% less than what i did. Im no genius.
