How to Transfer 401k to Fidelity Rollover IRA

Someone asks:

I currently have a 401k (matched) that I’m planning to transfer to a Fidelity rollover IRA because of the limited investment options I have on my 401k. I do have Roth IRA and brokerage account. I have the following questions:

  1. Can I roll over my 401k to a rollover ira account even though I’m still employed with my current work?
  2. Can I contribute to a rollover IRA with post tax money?

Thanks in advance

How to roll over your 401k to a Fidelity IRA

Bud C:

I don’t think my employer allows 401k transfer for active employees, but they do allow it for HSA. They didn’t make it easy to find, though.

There are some benefits to staying with an employer 401k plan. Sometimes, they can negotiate lower fees on their fund choices.

Another benefit example involves something called the rule of 55. In my plan, if I retire any time after 55 but before 59.5, I can withdraw early without any penalty. If I were to do a rollover, that rule would no longer be available.

Dave C:

You must check with your plan to see if they allow you to roll over all fully vested funds. Is it a Fidelity 401(k)? Some plans offer something called Brokeragelink, which is a self-directed 401(K). I have had multiple Fidelity 401(k)s, but only my most recent one had that option.

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Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.

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