How to Rollover Benefits
- 1). Call the employer plan administrator at the number listed on your account benefits statement. Explain that you are no longer with the company and need to have "rollover" paperwork sent to you. Confirm your name and address with the plan administrator to ensure everything is correct and current.
- 2). Locate an IRA custodian you want to open an account with. Banks, brokerage firms and insurance agencies are popular IRA custodians. Tax advisers are also good referral sources, or you can look at online custodians such as e*Trade, Scottrade or Schwab.
- 3). Open the rollover IRA by filling out the application provided to you by the new IRA custodian. Include administrator information and a copy of your benefits statement with the application and rollover request.
- 4). Fill out the rollover paperwork sent by your employer's plan administrator and submit it to the address provided on the forms. If given the option, make sure you select a "direct rollover" rather than an "indirect rollover" in the paperwork. Direct rollovers move the money from the administrator to the new custodian whereas indirect rollovers send you a check with an automatic 20 percent federal tax withholding, complicating the rollover.
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