In changing a 401-K to a Regular Broker Account, taking no distributions, are there any taxes or penalities? The money would stay with the same Broker.
by 
Kitser
ANSWERS: 3
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It has to go from a Qualified Plan to another Qualified Plan to avoid any taxes or penalties. A Regular Broker Account is not a Qualified Plan.
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Instead of a regular broker account, open an IRA account at say TDAmeritrade. this way there won't be any taxes.
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To add on to Merry1's answer: a 401k account is made up of pre-tax contributions, a regular broker account is not. You are able to transfer your 401k funds to another qualified plan, such as a traditional IRA (not a ROTH), another 401k, 401a, 503b or 503c plan. In addition, you should check with the company holding your 401k to ensure there are no fees associated with transferring - sometimes with certain accounts or funds you're invested in, there are time restrictions that you must meet for fees to be waived. If you do choose to transfer to a broker account, you will have to report your transferred funds as income and will also owe a 10% penalty if you're under the ago of 59 1/2. It's usually not worth it.
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