IRA Rollover

Archive for the ‘IRA Rollovers’ Category

Question: How long does it usually take to rollover a 401k to an IRA (I am leaving my current job shortly)?

I am leaving my current job shortly and I am curious to know how long I might expect a 401k Rollover to take. Also – and I preface this by saying that I am aware of the taxes/penalties that would be incurred – if I wanted to withdraw some cash from that IRA, how quickly might I be able to do that once the rollover is completed? I know, I know.. it’s a “stupid thing to do”. I do not want to just take a full cash payout when I leave – I do want to preserve most of my retirement, which is why I want to do a rollover first. Any thoughts on the time frame? Thanks
Thanks for the response. I work at a small-ish company – about 60 employees. Not sure if that would help things to move faster or slower.. of have any effect at all.

Answer: The most important variable is the paperwork. First, set up the rollover IRA with someone– a fund company like Vanguard or some such or even (shudder) a bank. Tell them you want the transfer paperwork and fill it out to give to your current 401K custodian.

Ask your employer for the paperwork necessary from the current 401K custodian’s end. They will have their own paperwork that must be filled out. If at all possible, have them transfer the funds to the new account. Giving you a check is easy for them, but not a good thing for you. If they do give you a check…make sure it says FBO your name, and ;immediately put it into the new IRA account.

After the new account is funded, you can then withdraw funds— even though you really shouldn’t! The penalties are too steep– 10% + the taxes= you lose almost 50%.

All of this may take 3-4 weeks.