How to Accomplish a Rollover
Two players must be notified of your intentions:
The outgoing institution, where the funds are coming from. Your funds will likely be liquidated and a check will be issued.
The landing institution, where the funds are headed. Likely your new employer’s 401(k) or an IRA.
Keep these points in mind:
This process is not fun, easy, or straight forward.
There are many hoops to jump through and the easy technology you are used to does not exist in the rollover space.
You will likely have to speak to someone on the phone to request a check.
You are attempting a “direct rollover” which means the funds move from one institution to another without passing through your hands.
Brooklyn FI is here to help, especially when you do succeed in getting the rollover paperwork from the outgoing institution.
Step 1 – Confirm
Confirm that your destination IRA or 401(k) plan is able to accept “rollover” or “roll-in” contributions. Although most IRAs and 401(k) plans will accept, you will need to check your “Summary Plan Document” and confirm with HR.
· Confirm the rollover procedure from both the outgoing and landing provider.
· Each custodian is different and each will have a different procedure.
Step 2 – Request LANDING INFO
Request rollover instructions from the landing institution. You need to find out how the landing account will accept the funds. Usually they will give you an address to mail a check to after you complete a form. You might send an email like this to your HR or plan contact.
I am attempting to do a direct rollover of my (401(k) or IRA) into the plan. Please send me the instructions and any paperwork I need to complete. If the outgoing institution needs to mail a check, please provide the payable to information and a mailing address.”
IRAs and Solo 401(k)s Opened Through Brooklyn FI
If you are rolling funds over into a TD Ameritrade IRA or Solo 401(k) opened for you by Brooklyn FI you need to complete an Account Transfer Form, attached a recent statement, and request a check made out to the following:
TD Ameritrade Clearing, Inc.
FBO Your Name and Your Account Number
PO Box 650572
Dallas, TX 75265-0572
Step 3 – Request OUTGOING INFO and check
The most common practice is to complete the rollover paperwork at the outgoing institution and request a check to be mailed to the receiving 401(k) or IRA institution “FBO” (for the benefit of) your name, social security number and account number.
To request rollover instructions from the outgoing institution, you might send an email like this to your HR or plan contact:
I am attempting to complete a direct rollover of my (401(k)/IRA/403(b)) out of ____ to _____. Please send me the instructions and any paperwork I need to complete to complete this process.”
Most institutions like Vanguard, Fidelity, and Schwab will send you a generic form to complete. You’ll fill in the payee information you got from the incoming institution. You may even be able to download this form from a portal you have access to. Please ping AJ (aka Princess Rollover) if you need help filling out the form. It should look something like this.
You will likely have to mail or fax the form.
Step 4 – WAIT FOR THE FUNDS TO COME THROUGH
You’ll wait a few weeks (hopefully 2-3) for the outgoing institution to liquidate your account and issue the check. Within a few days the landing institution will deposit your funds. You are now free to invest your funds.