As others have said, usually you have to be at least 59.5 years old to do that.I am wondering where people who are still working and purchasing TIPS bonds are placing them in their portfolio. My understanding is that it's undesirable to purchase TIPS bonds in a taxable account due to the tax drag or a Roth IRA account due to the lower expected growth than equities, so that would leave a 401K account for most people. Is it possible to rollover your bond allocation from a pretax 401K into a traditional IRA while still employed to be able to access the ability to purchase TIPS bonds?
Does your 401K have a brokerage option? If it does, then you need to check out whether the plan rules allow you to purchase actual bonds such as TIPS. The last thing to find out is whether your plan would allow you to roll over assets from the brokerage option "in-kind" if you think you'll ever want to roll over your 401K to an IRA in the future. That way you won't have to liquidate the bonds and re-purchase them at a later date.
Cheers.
Statistics: Posted by dcabler — Tue Jun 11, 2024 5:18 am — Replies 12 — Views 594