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Rollover checklist
Moving retirement money is mostly paperwork. Tick one wrong box, though, and you can end up owing taxes. Pick your situation and work down the steps. Your ticks are saved on this device, so you can stop and come back later.
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Three rules that prevent most rollover mistakes
- Ask for a direct rollover. If the money moves directly between the two companies, nothing gets withheld and nothing gets taxed. Have a 401(k) pay you instead, and it has to withhold 20% for taxes.
- Watch the 60-day clock. Got a check? You generally have 60 days to deposit the full amount in the new account, and that includes whatever was withheld. Any shortfall can be taxed, and possibly penalized.
- Only one IRA-to-IRA rollover a year. You can make only one indirect (check-to-you) rollover between IRAs in any 12-month period. Direct transfers between custodians don't count toward the limit.
The details are in Rollover vs. transfer and Your old 401(k): four choices.
Common questions
How long does a rollover take?
Often one to three weeks. It depends on the companies involved, and on whether there are signatures to collect or a check in the mail. Ask both companies how long they usually take.
Will I owe taxes on a rollover?
Not if pre-tax money goes into a traditional IRA and Roth money goes into a Roth IRA by direct rollover. Moving pre-tax money into a Roth account is a conversion, and that's taxable.
What tax forms will I get?
The old plan sends Form 1099-R showing the distribution, and the new IRA custodian sends Form 5498 showing the rollover. Report the rollover on your tax return so it isn't counted as income.
Is my progress private?
Yes. Your ticks are stored only in this browser on this device. We never see them.