401k rollover forms are one of the most dangerous weapons companies from which you are transferring funds can use against you. There are companies that will reject and return your 401k rollover paperwork if something even as seemingly insignificant as the period after your middle initial appears differently on your transfer paperwork than it does on your current account statement.
401k providers have lost trillions over the last few years, and each day more money leaves those custodians as well-informed investors protect those funds through IRA transfer options. This is why many companies have adopted Machiavellian policies that make it all but impossible to liberate your retirement money and stop the 401k rollover process.
You’ll want to complete what is referred to as a “direct” rollover where your funds are transferred directly from one investment manager to another. This will help avoid taxes and withdrawal penalties around you taking possession of the 401k funds or missing critical deadlines. The best way to do this is to open your new 401k account before contacting your current plan administrator about closing the old 401k plan.
Don’t think you need to roll your old 401k account into a new employer-sponsored 401k plan. You are going to be contributing to your new 401k account anyway. Many of these plans offer limited investment choices so it’s best not to put all your retirement assets in one account. A better choice for your 401k rollover is to transfer funds to an individual retirement account.
Two 401k Rollover Forms you Must Complete
There are typically two separate forms that must be completed for a 401k rollover to be successful. The first form is called the “transfer” form, while the second set of paperwork is referred to as the “account application.” The transfer form is used to direct your current custodian on where to send your funds. The application is used by your new custodian to open your account and qualify it for a rollover and other transactions.
Make sure you provide the name of your current investment provider and the exact address on your 401k rollover forms. Besides the account information for both the old investment firm and the new company, you’ll need the fund names and your investment percentages in each.
Gather up all the documents on your current 401k plan. These will help you figure out how much is in the account, how much you contributed and how much your employer contributed. Pay attention to the investing themes of the funds in your account. This will help you decide how to allocate money in your new 401k account.
Contact 401kRollover for a Free Consultation on 401k Rollover Forms
401kRollover.com has an intimate working knowledge of many of America’s largest 401k custodians, and we know that some companies can be especially difficult when clients are making a frenzied run for the exit. However, we won’t let you stay stuck if your goal is to break free from your 401k provider and secure your finances with a self-directed IRA.