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PRAP During Furlough

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Old 07-18-2020, 08:57 PM
  #31  
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Originally Posted by Barley
Also, to this point, once recalled you can reverse-roll an IRA into the company 401k.

I’d just add too that when you start a rollover your money will be out of the market for a time. Sometimes 1 - 3 weeks. That may be something to consider in a high volatility time, but I understand the strategic reasons why rolling over may benefit some.

Also, just my feeling on this.. I would be doing some massive downsizing and budget cutting before ever even thinking about any 401k loans or distributions. 401ks and IRAs are the only tax advantaged retirement vehicles us average Joe’s will ever get. Tread lightly on early use of it.
Regarding the money being out of the market, it depends on how the firm to which you are transferring the assets accepts them as well as Schwab’s policies. A trustee to trustee transfer will transfer the assets in kind, rather than liquidating them, meaning there is no time lost in the market. This is only possible if your assets are not completely Schwab/PRAP-specific.
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