Summary:
Do you have retirement plans from multiple companies? Are you ready to consolidate them? The 401K brothers take us through the simple steps to consolidate your 401K accounts.
Show Notes:
- 1:00 - 401K Retirement Plan rollovers
- 2:30 - The first step is to reach out to your old employer and request the 401K rollover forms from them
- 3:02 - The check must be made out to the new holder of your 401K stating that it is for benefit of you. This is the most common way: a direct rollover.
- 4:00 - On an indirect rollover, where the check is made out to the participant only, you will be deducted 20% tax from the amount rolling over.
- 6:05 - Make sure to always update your beneficiaries on all of your accounts
- 7:30 - Reach out to your financial advisor to figure out what kind of rollovers are best for you
3 Key Points:
- It isn’t difficult to have many 401K accounts with several different employers.
- To consolidate your accounts, you can request a form from your old employer to start rolling over your account.
- Make sure the check is made out to the next institution that will be holding the money otherwise you will have to pay penalties.
Tweetable Quotes:
- “Folks have a lot of tombstones from their old workplaces with their 401K plans” –Andy
- “Reasons to rollover is to consolidate.” -Bill.
- “Check with your new employer.” –Bill.
Resources Mentioned:
Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC, a Broker/Dealer and Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
