Inside The Plan

Rollovers...Old Employer to New

Feb 11, 2019

Do you have retirement plans from multiple companies? Are you ready to consolidate them? The 401K brothers take us through the simple steps to consolidate your 401K accounts.

Show Notes:

  • 1:00 - 401K Retirement Plan rollovers
  • 2:30 - The first step is to reach out to your old employer and request the 401K rollover forms from them
  • 3:02 - The check must be made out to the new holder of your 401K stating that it is for benefit of you. This is the most common way: a direct rollover.
  • 4:00 - On an indirect rollover, where the check is made out to the participant only, you will be deducted 20% tax from the amount rolling over.
  • 6:05 - Make sure to always update your beneficiaries on all of your accounts
  • 7:30 - Reach out to your financial advisor to figure out what kind of rollovers are best for you

3 Key Points:

  1. It isn’t difficult to have many 401K accounts with several different employers.
  2. To consolidate your accounts, you can request a form from your old employer to start rolling over your account.
  3. Make sure the check is made out to the next institution that will be holding the money otherwise you will have to pay penalties.

Tweetable Quotes:

-       “Folks have a lot of tombstones from their old workplaces with their 401K plans” –Andy

-       “Reasons to rollover is to consolidate.” -Bill.

-       “Check with your new employer.”  –Bill.

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