Originally Posted by
APC225
Over 59 1/2. Not aware of lawsuit issues.
401Ks are protected by federal law and are very hard to get to - like only the IRS can take away 401k money.
IRAs are protected by a patchwork of state laws, with some states determining how much you need to live - the rest is exposed to lawsuits.
“
Unlike 401(k) retirement plans and other savings schemes covered under the Employee Retirement Income Security Act of 1974, individually held IRAs are not offered blanket protection from creditors under federal law”
https://www.investopedia.com/ask/ans...en-lawsuit.asp
Not sure why you want to roll it over while you are still working
Can’t withdrawal money from the PRAP/401k while you are still employed with the company that sponsors your accounts. Trying calling Schwab and taking a disbursement. It’s not going to happen.
It can happen with an IRA, however.
If you go out on disability or have to call in sick for an extended period of time, or just want to slow down and fly 1 trip a month, it would be nice to be able to tap retirement investments early. My parents did this - they worked part time (like 2 days a week) the last couple years of their careers and withdrew from their IRAs before full retirement and 401(k) access.
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