Be Familiar with the 401k Rollover Rules

After deciding to rollover your 401k, the next step that you should do is to be familiar with the 401k Rollover rules. You have to be aware of the practical steps and make sure that the rollover was properly initiated. You may hire an adviser or you may do it yourself. What is important now is to do it right. Equip yourself with all the knowledge concerning the dos and don’ts in doing a rollover.

It is better for you to find the right place where your money will be moved to. Open an IRA account at a discount brokerage firm or a Mutual Fund Company. It will act as a custodian which will hold your account for the assets you owns.

• The steps start at the request and filling out of the IRA retirement account application form of the company of your choice. Ensure that you have specified that what you are applying for is a rollover IRA and not a regular IRA account.
• Also, fill out an Account Transfer form from the brokerage firm where you are transferring your account to. Indicate that you will move your 401k retirement plan to IRA. Check all your IRA investment options and the data you have entered in your application.
• Have a copy of the last statement of 401k you received and fax it to the brokerage company you chose. The mail should include the new and transfer account application, and the last 401k statement.
• Occasionally, these are the things that you need to do. But sometimes, there is still a need for you to contact your 401k plan administrator and inform them that you will rollover your account to an IRA.
• An IRA rollover account should already be established at the time you contact the plan administrator. The plan administrator will be sending an application request form asking you to specify the name of the company you are going to engage your account into.

It will be your task to give what is asked so that they will be formally inform about your account’s rollover to IRA. Make sure to abide with all these 401k Rollover rules.