Thread regarding Wells Fargo & Co. layoffs

I reached out to Empower directly and rolled most of mine over into a self-directed IRA. The returns at Empower are ridiculous - 5% or so. My IRA (that I manage myself) is getting about 25%-30% return.
Empower cut a check, mailed it to my home, and I contacted my bank to ensure I had the upload process correct. That $ is now getting a much better return. After the first of the year 2026, I’ll do the same thing again, assuming I’m not displaced before then.

This is covered (admittedly somewhat vaguely) in the 401(k) plan in the handbook/benefits book. I can't remember which, but it's not that hard to comprehend.

Before you read the rest, please consider that this may have changed. I haven't looked at it in years.

IIRC it was called an in-service distribution if you were still employed at WF, which meant you could only take what wasn't in the safe harbor/match account, so roughly 50% of the portfolio. You had either 30 or 60 days to deposit it into an IRA before tripping the "this is a withdrawal" flag and paying taxes plus an early withdrawal penalty.

I don't believe there was a penalty for rolling it over upon leaving/being displaced, but there was a condition (age?) where if you didn't meet it, you could only take the non-safe harbor/match funds for rollover.

I’d call empower rather than listen to us

What happens if you get laid off and you're younger than 55? Is it a hassle to get part of it paid out (with penalty and fees) if you need the money?

AI says you can: In Serviuce Roll Over wins the debate.

Here's a more detailed explanation:
In-service rollover:
This type of rollover allows you to move funds from your 401(k) while you are still employed by the company sponsoring the plan.
IRA Rollover:
You can roll over your 401(k) funds into a traditional or Roth IRA, giving you more control over your investments.
Another 401(k):
Some 401(k) plans allow for in-service rollovers to other employer-sponsored plans, but this depends on the specific rules of your current plan.
Reasons for rollover:
Individuals may choose to roll over their 401(k) to gain more investment options, potentially lower fees, or to consolidate retirement savings.
Important considerations:
Plan rules: Not all 401(k) plans allow in-service rollovers. Check with your plan administrator to see if it's an option.
Tax implications: Rolling over pre-tax 401(k) funds into a traditional IRA may impact your ability to roll those funds back into an employer plan later, according to Fidelity.
Investment choices: Consider the investment options available in your new IRA or 401(k) when making the rollover decision.
Fees: Be aware of any fees associated with the rollover process, both from your current plan and the new account provider.

Rollover ≠ Distribution. Lots of uninformed responses here.

Mixed answers here and some flat out wrong. OP you don’t state your situation

Still employed with wells: can’t do anything

Laid off: rule of 55. If you’re 55 or older AND leave it in 401k you can withdraw funds without penalty but you’ll pay taxes. 59.5 or older you can do the same and also roll over. If younger than 55 and been laid off, roll it all over to an IRA (you can also leave it but I wouldn’t).

if you leave wells then roll it over otherwise leave it where it is

We actually have outstanding investment options in the 401K, especially in terms of fees. Better off leaving it alone and starting a new IRA at Fidelity or Schwab if you want to play around with different investments. Or just open an investment account.

If you are between 55 and 59.5 and leave WF or lose your job, think before you roll it over. The rule of 55 allows 401K withdrawals in this instance with no penalty, if the 401K is with the employer you just left/were laid off from. You never k ow when you may need some extra money if unemployed, so just think before you do it.

Distributions having nothing to do with rollovers -- I did a rollover while at wells and believe there are no restrictions on rollover amount but I do remember there once was a restriction so you would have to check (could be age or ???) Typically you would talk to the Ira provider and then have empower make out a check to the provider fbo (for benefit of) your name . Empower mails the check to you which you send to provider. The only tax consequences would be if you did withdraw funds or decide to convert to a Roth IRA from a traditional 401k

If terminated or you are over 59.5 yrs you can roll over without any penalty or taxes to IRA.

@a1 as was said you have no idea what you are talking about. What the OP is asking about is called an in service distribution. In order to do this you need to be at least 55 years old. If your account is a traditional 401k you will roll it all into a traditional rollover IRA, if it is the Roth 401k you would roll it into a Roth IRA. OP you work for a company that has one of the largest brokerage offices in the industry. Go to your FA at the branch you work in anD ask them these questions.

@a1 1) You have NO idea what you're talking about. None 2) Re: the bill, you are completely full of sh-t. Educate yourself!

I don't work for your company, but you will have to pay taxes on the amount your roll over if it is a Roth IRA. So if you roll over $500,000 this year to roth ira, that means you have to pay taxes on all $500,000 which would be lots of money if you make a decent salary and are young. That's why people wait until they are older (or retired) cause they don't make high salary (or lots of money coming in since they are retired) and depending on the presidents and their policies. Like this "Big Beautiful Bill" which takes away money from the poor and middle class to give to the rich. Meaning the poor and middle class folks have to pay more in taxes then the rich. Do google search or call Fidelity Investments. Your HR will be useless like most corporate HRs.