Lockheed Martin has one of the most generous 401(k) plans out there. However, if you are looking for more diversification outside of your 401(k), you may be eligible to roll your 401(k) into your Traditional IRA while still working at Lockheed. In order to do so, you would need to request an in-service rollover. In today’s blog post, we explore the pros and cons of the in-service rollover. Enjoy!
Here is a quick reminder of the characteristics between a 401(k) and an IRA: “Why would I want to roll over some of my 401(k) into an IRA though?” you may be asking yourself. Some possible benefits of an in-service rollover are:
- Provides diversification out of your company plan
- With an IRA, you will be the owner of the account compared to only a participant in a 401(k)
- Many investment options in an IRA versus limited funds available for Lockheed employees in the 401(k)
- Potentially greater ease of management due to consolidation
- You can still contribute to your 401(k) and receive your company match
Important considerations:
- Eligibility is based on age and status
- Typically, only your contributions to your 401(k) are allowed to rollover
- IRA fees may be higher than a 401k plan depending on where your IRA is held
- You may roll over all or part of the amount eligible
- Your 401(k) Summary Plan Description has all of the details
IRAs and 401(k)s each have their own advantages and disadvantage. Call us today if you would like to review your options and determine if you are eligible.
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Be sure and check back next week for more valuable Lockheed Martin information. Cheers!