401K or IRA Rollover

Transferring your 401(k) holdings from a Origin account to a Destination account involves a few steps. This process is commonly referred to as a "rollover." Here's a step-by-step guide on how to do this:

Step-by-Step Guide to Rolling Over a 401(k) from Origin to Destination

1. Open a Rollover IRA at Destination

• Why: You need an account to receive your 401(k) funds.
• How: Visit the Destination website and open a Rollover IRA account. You can do this online or by visiting a Destination branch.
• Source: Destination Rollover IRA

2. Contact Origin

• Request a Rollover: Inform Origin that you want to roll over your 401(k) to your Destination Rollover IRA.
• Necessary Information: Have your Destination Rollover IRA account details ready. Origin may require the account number and the address of the receiving institution.
• Source: Origin - How to Roll Over Your 401(k)

3. Choose the Rollover Method

• Direct Rollover: This is the preferred method. Origin will transfer the funds directly to Destination. You won’t receive the money yourself, avoiding potential taxes and penalties.
  • Steps: Fill out the necessary forms provided by Origin and Destination. Origin will send the funds directly to Destination.
  • Source: IRS - Retirement Topics - Rollovers
• Indirect Rollover: Origin sends you a check, which you must deposit into your Destination Rollover IRA within 60 days.
  • Steps: Receive the check, then deposit it into your Destination Rollover IRA within the 60-day window to avoid taxes and penalties.
  • Note: With an indirect rollover, Origin will withhold 20% for taxes, which you’ll need to make up when you deposit the full amount into the Destination account.
  • Source: Origin - Understanding Rollovers

4. Verify the Transfer

• Confirm Receipt: Check your Destination Rollover IRA to ensure the funds have been transferred correctly. This may take a few days to a few weeks.
• Follow Up: If there are any issues or delays, contact both Origin and Destination for assistance.

5. Reallocate Your Investments

• Investment Options: Once the funds are in your Destination Rollover IRA, you can reallocate them according to your investment strategy.
• Guidance: Destination offers tools and advisors to help you choose the right investments.
• Source: Destination Investment Guidance

Tips and Considerations

• Consult a Financial Advisor: If you're unsure about any step, consult with a financial advisor to ensure you're making the best decisions for your retirement savings.
• Understand Fees and Expenses: Be aware of any fees associated with the rollover process from both Origin and Destination.
• Tax Implications: Ensure that the rollover is done correctly to avoid unnecessary taxes and penalties.

By following these steps, you can smoothly transfer your 401(k) holdings from Origin to Destination, maintaining control over your retirement funds and taking advantage of Destination’s investment options.