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How do I transfer my funds?

Dec 05, 2012 by Diane from Woburn, MA in  |  Flag
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4 votes
David Carroll Level 7

One addition to the previous great answers. If you are transferring funds to your new employer's retirement plan or to our own IRA, then you want to make sure that you are doing a direct transfer and not a rollover. Sometimes the wording on the forms to distribute the funds can be confusing and you may be unsure of which section to complete. The direct transfer will let the entire account balance be paid out without income tax withholding. Even though your intention may be to rollover (deposit the funds into your IRA within 60 days to avoid a taxable distribution) this option is treated, from the current plan standpoint, as a distribution to you and the plan is required to withhold 20% of your balance. If the forms are unclear, then the old or new plan administrator or the new custodian or the IRA should be able to help. One other point, even though you choose the direct transfer, you may still actually receive the check from the old plan and you will need to deposit the check with the new account. The check will be payable to the new custodian or plan FBO your name, e.g. TD Ameritrade FBO Jane Smith.

Comment   |  Flag   |  Dec 22, 2012 from Paradise Valley, AZ

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Diane, There are a couple of ways to transfer funds. In the absence of more information, here is a couple of suggestions. 1] Get the papaerwork needed from your new employer and submit them to your new employers plan administrator to roll your old 401k to the new one. 2] Decide on where you want to roll your 401k funds to and then prepare the reciving custodians application. Once the application is established, then submit your old 401k's administration paperwork to roll the funds to the new custodian of choice [ schwab, TD, Fidelity].

Please note that you should make some critical decisions first before you move forward. a- Are you still in accumulation vs distribution? b- do you want a custodian that is multifamily or a single family of funds? c- Do you want to consider some of the income benefits for life that are being offerred by certain insurance companies. Hope this helps, Good Luck Dan

Comment   |  Flag   |  Dec 06, 2012 from Asbury Park, NJ

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If your funds are held in an active 401k plan or 403b plan, generally you can transfer funds to a new plan or to a rollover account by contacting the plan administrator. They will require you to complete some forms, possibly to obtain a medallion guarantee, and provide recipient account information. If you are working with an advisor (or would like to), the advisory firm often will have someone on staff who can help complete forms and facilitate the transfer on your behalf. Good luck and feel free to re-post if you have follow up questions.

Comment   |  Flag   |  Dec 19, 2012 from San Francisco, CA

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Diane – without more details, my suggestion would to be to contact your previous employer and find out the process and/or get the forms that they may require to request the distribution. Next, decide if you would prefer to transfer the funds into your new employer’s retirement plan or an IRA. Lastly, complete the necessary paperwork for your new employer’s retirement plan or IRA to set-up the account and transfer the funds.

Comment   |  Flag   |  Dec 22, 2012 from Shawano, WI

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