How to Rollover a 401(k) to an IRA

Whenever possible, choose a direct rollover vs. taking personal possession of your 401(k) assets.¬†Once you take personal possession, you have 60 days to place that money within an IRA before you incur taxes and possible penalties. A direct rollover is much better because it is “trustee to trustee.” Your former employer automatically transfers the money directly to your IRA custodian. You are not deemed to have taken possession and cannot incur taxes or penalties.

For the direct rollovers, it is necessary to first open up the IRA account. Then your former employee will have you fill out a form asking, for example: the name of the new IRA custodian, the IRA account number, or how to title the assets.

Gold Leaf retirement specialists can help you find an IRA custodian who is responsive and who charges no annual maintenance fee. Gold Leaf retirement specialists will also assist you in filling out the necessary paperwork. Remember, the sooner you roll over your 401(k) to an IRA, the sooner you will have a broader universe of investment choices to meet your needs in retirement.


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