How to Accomplish a Rollover from your 401(k), 403(b), or other qualified retirement plan

 

Two players must be notified of your intentions:

1.     The outgoing institution, where funds are coming from. Your funds will likely be liquidated and issued in the form of a check.

2.     The landing institution, where the funds are headed: either a BKFi-managed investment account (typically with Charles Schwab) or a new employer’s 401(k).

Important Things to Note Before You Begin the Rollover Process:

  • You are attempting a “direct rollover” - this language is important: it means the funds move from one institution to another without passing through your hands and, thus, there are no tax implications.

  • If the address on your 401(k), 403(b) or other qualified retirement plan is out of date, you will need to update it before you request a rollover. This typically puts a hold on the ability to do a rollover for 10-14 business days.

  • BKFi is here to help! If the outgoing and/or landing institution requires that you fill out some paperwork, please don’t hesitate to reach out.

Step 1: Confirm Rollovers Are Accepted

Confirm that the destination IRA or 401(k) plan is able to accept a rollover or roll-in contribution. If your destination account is with Charles Schwab and managed by BKFi, consider this your confirmation that rollovers are accepted! Otherwise, you can either call the landing institution, check your Summary Plan Document, and/or confirm with HR that rollovers are accepted for destination accounts outside our management.

Step 2: Request Landing Institution Information

Request rollover instructions from the landing institution, i.e. how the destination account will accept the funds. Typically, rollovers are transacted in the form of checks, so you will likely be given instructions on how to make out the check as well as the address to which you should send it.

If you are rolling funds over to a Charles Schwab IRA, Roth IRA, or Solo 401(k) managed by BKFi, the check should be made out to “Charles Schwab Bank FBO [Your Name] [Account Type]” with the receiving Schwab account number written on the face of the check and sent to:

US Mail
Charles Schwab & Co., Inc.
P.O. Box 2380
Omaha, NE 68103

Overnight Mail
Charles Schwab & Co., Inc.
200 S 108th Ave
Omaha, NE 68154

If contacting HR or a 401(k) plan contact for an account outside of BKFi’s management, you might send an email like this:

“I am attempting to do a direct rollover of my [former employer] 401(k) into my current plan. Please send me the instructions and any paperwork I need to complete. If the outgoing institution needs to mail a check, please provide the payable to information and a mailing address.”

Step 3: Request a “Direct Rollover” from the Outgoing Institution

401(k), 403(b), and other plan custodians require that you request the rollover from them. Have your receiving Charles Schwab account number ready.

Occasionally, you can log in to your plan custodian’s website (e.g. Fidelity, Empower, Vanguard, etc.), navigate to a section on the website for “Withdrawals” and/or “Rollovers”, and follow the prompts to set up a direct rollover electronically. 

Most of the time, however, you’ll simply have to call the 401(k) plan custodian to initiate a rollover. Start the conversation by saying, “I would like to do a direct rollover of my [Plan Type] to my [Account Type] at Charles Schwab,” and they should walk you through the rest.

If possible, request that they send the check directly to the Charles Schwab Bank address outlined in Step 2. Don’t worry if that option isn’t available - they’ll simply send the check to you instead to forward along to Schab.

Step 4: Wait for the Funds’ Arrival

You’ll likely wait 2-3 weeks for the outgoing institution to liquidate your account and issue the check. If the check is being sent to you, simply send it to the Charles Schwab Bank address outlined in Step 2. Once it arrives at Schwab, they should deposit it within a day or two and your funds will be ready to invest shortly after!