How To Transfer A Retirement Plan Account

If you have a new job or have retired, you should consider moving your retirement plan account balance. Putting all your retirement savings into one 401(k) plan or Individual Retirement Account (IRA) has its advantages. For example, it will make it easier for you to track your assets’ performance.

You should evaluate your new employer’s plan before deciding to roll your assets over.  Before you move your old 401(k) plan balance into a new plan consider the information below and:

  • Are the fees higher than your old plan?

  • Are there enough investment options?

  • Can you make the move right away?

If you’re unhappy with the options provided by your new employer’s 401(k), you can always consider your other options, including a rollover into an IRA.

  1. Arrange the rollover with your new 401(k) plan administrator. You may have to select the investments you’d like to make before you complete the rollover. Otherwise, you can transfer the lump sum and allocate it gradually to investments of your choosing.

  2. Complete the forms required to move your money from your former employer’s plan.

  3. Ask your former administrator to send a check or electronically transmit your account value directly to the administrator of your new plan.

Paperwork

Below is a list of the forms/paperwork needed to complete the following retirement account distributions.

Rolling To A New Employer Retirement Plan

  1. Determine who the financial service provider is on the new retirement plan.

  2. Request from your Human Resources department any “incoming” rollover paperwork, complete and return this to Human Resources or mail directly to the financial service provider of the new employer’s retirement plan.

  3. Determine the exact name of the retirement plan and what the retirement plan number is, if one exists.

  4. Complete a distribution form from your previous retirement plan and give this to Human Resources (they may request that you mail it directly to the financial service provider to the retirement plan).  You can usually find a form on your previous employer’s retirement plan financial service provider website.  When you log into your account, there are forms available.

Rolling To An IRA

  1. Set up an IRA account with your new financial service provider and or investment advisor and make sure you have an account number.

  2. You will need the new IRA account number to complete the distribution form.  After you complete the distribution form from your previous retirement plan, give it to Human Resources of your previous employer (they may request that you mail it directly to the financial service provider of the new IRA).  You can usually find a form on your previous employer’s retirement plan financial service provider website.  When you log into your account, there are forms available.

Note: Some financial service providers will allow you to complete web-based forms right from your previous employer’s retirement account.  This means no paperwork and usually faster processing.