How to Do a 401(k) Rollover
Author: Jason Buzi / Date: August 6, 2023 / Tags: 401(k)
A 401(k) rollover is the process of transferring the assets of your 401(k) plan from your current employer to an individual retirement account (IRA) or a new employer’s 401(k) plan. Here are the steps to do a 401(k) rollover:
- Choose the type of account you want to rollover to: You can choose to rollover your 401(k) assets to a traditional IRA or a Roth IRA. It’s important to consider the tax implications of each option, as well as the investment options and fees associated with the account.
- Contact your current 401(k) plan administrator: Inform them of your decision to rollover your account, and request the necessary paperwork to initiate the rollover.
- Open a new IRA or new employer’s 401(k) plan: Once you have the paperwork from your current plan administrator, open a new IRA or new employer’s 401(k) plan.
- Complete the rollover paperwork: Fill out the necessary paperwork and submit it to your current plan administrator and new account custodian.
- Wait for the rollover to be completed: The rollover process can take several weeks to complete. Once it’s done, the assets from your old 401(k) plan will be transferred to your new account.