Author Topic: Transfer from one 401K to another  (Read 1751 times)

FunkyStickman

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Transfer from one 401K to another
« on: February 12, 2015, 01:53:41 PM »
I have a 401K with Principal.com from an old employer that I'm no longer contributing to. I'd like to transfer it into my current 401K with Fidelity (which has a better return rate).

I did some reading on this, and it looks like to be able to transfer it tax-free, I think I have to fill out a rollover form and have Principal cut a check directly to Fidelity.

Does this sound correct? I'm not the most experienced with these things.

rayt168

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Re: Transfer from one 401K to another
« Reply #1 on: February 13, 2015, 12:22:42 PM »
Sounds right to me.

Need2Save

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Re: Transfer from one 401K to another
« Reply #2 on: February 13, 2015, 01:24:49 PM »
Yes - sounds like you are performing a direct plan-to-plan rollover.  People do this successfully all the time.  Be sure to ask Fidelity EXACTLY how your rollover check should be made out so that your old plan administrator (Principal) makes the check out correctly.  Do not ask them to make the check payable to you!   If the old 401k was pretax (qualified) and your new 401k is pretax (qualified) then you have no problems and won't pay taxes on the funds until you withdraw them much later.  Fidelity should also ask you how you want the incoming funds invested so be prepared to direct them on what funds you want to invest in. 

seattlecyclone

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Re: Transfer from one 401K to another
« Reply #3 on: February 13, 2015, 02:35:02 PM »
It's pretty common that your old 401(k) provider will want to mail the check to you so you can fill out the paperwork for your new 401(k) and mail that form together with the check. This is okay. The key thing is that the check needs to be made out to "<new 401(k) plan company> for the benefit of (FBO) <your name>" instead of just "<your name>".

Cwadda

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Re: Transfer from one 401K to another
« Reply #4 on: February 13, 2015, 02:37:23 PM »
I just did this for my dad. Same situation. I have a question though. We transferred all the assets over without liquidating them first. Was that a mistake? Are there any fees for doing that?