to begin taking distributions prior to age 59½ without penalty. If you move these funds over to an IRA this option is lost. It’s also lost (at least temporarily, while you’re employed by the new employer) i
maintaining the 401(k) plan gives you an option tobegin taking distributions prior to age 59½without penalty. If you rollover your 401k to an IRA or to a new employer’s 401k plan, this option is lost.