4 Steps to Rolling Over an IRA or 401(k)

If you’re saving for retirement, one question you’re likely to ask is, “How do I roll over funds to an IRA from an IRA or old 401(k)”

Before answering that, you should recognize that there are four alternatives to managing funds held in an old 401(k).

  • Leave your money with your former employer’s plan, if that’s allowed.
  • Roll over to a new employer’s plan, if there is a plan and it’s permitted.
  • Cash out.
  • Roll over to an IRA.

As you review all of those options, there are a number of factors to consider including (but not limited to) your investment choices, fees and expenses, services, protection from creditors and legal judgments, penalties for withdrawals and required minimum distribution rules. You should consider talking to a tax advisor before choose any of the options above.

If you decide to roll over funds, here are some steps that can help.

  1. Contact your plan administrator or financial institution where you currently have your retirement account – such as 401(k) or 403(b). Let them know you want to roll over your qualified plan. You will want to ask them what paperwork will be required, along with what fees or penalties may be charged. 
  2. Open your Scottrade® IRA account. This can be done at your Scottrade®branch or online. You will want to have an IRA account established first, so when the funds are requested to be rolled over they go directly to that new account.
  3. Complete and submit the required rollover paperwork from your plan administrator or financial institution. Be aware, some rollover paperwork requires you to include your new IRA account information or a fund acceptance letter from Scottrade. We will work with you one-on-one to answer your questions and help you complete the rollover paperwork. You don’t want to have any errors or miss checking an important box because it could delay getting the funds rolled over to your new IRA. If you find the required rollover paperwork confusing, you’re welcome to bring the paperwork to a local Scottrade®branch or call our National Service Center at 800.619.7283.
  4. Sign and submit all forms to your plan administrator or financial institution and Scottrade.

With the right help from Scottrade, your rollover can be an easy process and one that can help put you in control of your investments.



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Scottrade does not provide tax advice. This material is for informational purposes only. Please consult your tax or legal advisor for questions concerning your personal tax or financial situation. The information and content provided is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product, or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances, and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.

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