Rollover FAQ

If you received distribution forms from your employer, complete them using the accompanying instructions. If you need forms, contact your benefits department to obtain them. You may also be able to download forms by logging in to your plan account. If the institution holding the funds will accept our paperwork, you may complete our rollover form.

You can roll over your retirement plan assets into an IRA or move them into a new employer’s plan.

If you want to roll over into an IRA, any money in a Roth 401(k) or Roth 403(b) account will be rolled over into a Roth IRA. Non-Roth accounts can be rolled over into a traditional IRA or Roth IRA. Rollovers to Roth IRAs from non-Roth accounts are taxable. If you want to roll over your money into your new employer’s plan, ask your new employer if you’re eligible and if the plan accepts rollovers. You can’t roll over money from Roth accounts into plans that don’t offer the Roth option.

Talk to your financial professional about the best option for your situation. They will be able to assist with obtaining and completing the appropriate forms.

Only if your current plan accepts rollovers. Check your plan’s Summary Plan Description (SPD) or talk to your plan’s financial professional to see whether your plan accepts rollovers.

If it does, you’ll need to contact your former employer to obtain and complete a distribution request form. On the form, indicate you want a direct rollover to your current employer’s plan. You’ll also have to provide your former employer with the new plan’s name and account number and the name of the trustee. You’ll find the plan name and name of the trustee in your SPD. Ask your plan’s financial professional for the plan’s account number.

You will receive a Form 1099-R from your old plan’s provider indicating you initiated a direct rollover. Since there is no federal income tax withheld, your entire balance will be rolled over and you’ll continue benefiting from the tax advantages. If you roll over your money into an IRA, you will receive a Form 5498 and an account confirmation from the IRA trustee or custodian. If you roll over your money into a new plan, ask your employer if you will receive confirmation.

Yes, but you must do so within 60 days of receiving your distribution to keep the tax benefits. This is known as an indirect rollover.

Your employer withholds 20% of the taxable portion of your distribution for federal income taxes. State income taxes may also have been withheld.

If you replace this withholding with your own money, you can roll over the entire amount of your distribution. The IRS will apply the amount toward your tax liability for the year, and if applicable, you’ll get the withholding back from the IRS when you file your taxes.

If you roll over your distribution but don’t replace the withholding, the amount withheld will be considered a distribution subject to taxes and possible penalties.

You can avoid this with a direct rollover, which goes straight from your old plan’s trustee to an IRA or your new plan’s trustee―not through you. If the sending and receiving plan types are the same (i.e., IRA to IRA, 457(b) to 457 (b)), consider a transfer of assets, which is not a tax-reportable event.

Company retirement plan rules can vary, but most follow the same basic guidelines. If your account balance is less than or equal to $1,000, your plan might cash you out. If your balance is greater than $1,000 and less than or equal to $5,000, your plan might roll over your balance into an IRA selected by your former employer. If your balance is greater than $5,000, you will generally be permitted to leave your balance in the plan; however, you will not be able to contribute to the account and will be subject to any restrictions and rules of the plan.

You can generally move the vested portion of your account from one type of plan to another as long as the new plan accepts rollovers.

Your after-tax contributions are only transferable between similar plans (for example, from a 403(b) plan to 403(b) plan), and you must move your money directly between plans.

Check your new plan to see if it accepts rollovers of Roth assets and/or after-tax contributions.

Your employer may require you to sell your shares when you leave the plan. You can then roll over the proceeds into an IRA or to your new employer’s plan. Or, if your old plan allows, you can roll over your shares from the plan directly into a rollover IRA established through a broker.

Check with your former employer about the rules governing the buying and selling of company stock, as well as the tax consequences. It may be to your advantage to take your distribution in stock rather than cash. If you intend to continue holding the stock, ask the receiving institution if they can accept another company’s stock.

You can move your money to a rollover IRA account, or if permitted by your former employer, you can also leave your money in your former employer’s plan. If you choose the latter option, you can no longer contribute to the account. With both options, your money has the opportunity to grow tax-deferred.

Keep in mind that most plans require that loans be repaid when you leave. If you roll over your remaining account balance to a new employer’s plan, you may also be able to roll over the outstanding balance of your loan to your new employer’s plan. Check with your new employer to find out if the loan will be accepted by the new plan. You cannot roll over your loan to an IRA.

If you can’t move the loan to your new plan, and if you don’t repay the loan within the time allotted, the outstanding balance will be treated as a withdrawal, subject to federal and applicable state and local taxes. If you’re under age 59½, you may also have to pay a 10% early withdrawal penalty unless you qualify for an exception.

Yes, provided you take your required distribution from the plan before you roll over your money. The money you receive from required minimum distributions (RMDs) cannot be rolled over.

The IRS says you must begin withdrawing money from your employer plan account(s) by April 1 following the year you turn 73 or retire, whichever is later (unless you own 5% or more of the company). Withdrawals from traditional IRAs must begin by April 1 following the year you turn 73. If you don’t withdraw the minimum required amount, you will be subject to a 25% tax penalty on any amount that should have been withdrawn but wasn’t. (The tax penalty may be reduced to 10% in certain situations.) Roth IRAs are not subject to RMDs.

The SECURE 2.0 Act increased the age when RMDs must begin from 72 to 73, effective for individuals turning 72 on or after January 1, 2023. If you reached age 72 before this date, you are still required to take RMDs.