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Consolidating your retirement accounts allows you more investment flexibility as well as the simplicity of keeping your money with you in one place throughout your career.
- Confirm that your current retirement Plan accepts the type of retirement account you want to roll over. Use the IRS Rollover Chart (https://www.irs.gov/pub/irs-tege/rollover_chart.pdf) for reference.
- Contact your current employer’s Recordkeeper (retirement plan company) for information on how a check should be addressed from the previous Recordkeeper to the current Recordkeeper. Also ask if any forms or paperwork are needed by the current/receiving Recordkeeper. You may be able to login to your previous Recordkeeper website and begin this process online – usually the section is titled “Rollovers” or “Rollovers & Withdrawals” or “Distributions.”
- Request a direct rollover distribution from the previous retirement plan Recordkeeper. Make sure the check issued is made payable to the Custodian or Trustee for the benefit of (FBO) your name. If the check is addressed to you rather than the institution, it could be treated as a taxable event and you may owe taxes and penalties on your entire account balance.
- Sometimes the check can be mailed directly to the new Recordkeeper, and sometimes it will be sent to your address. Do not sign the check if you receive it – instead mail it to the new Recordkeeper along with any forms or paperwork.
If you need any assistance, please contact us today: https://smartmap.worldadvisors.com/contact-us.
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