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401(k) / 403(b) Rollovers

INVEST

You can transfer your previous employer's Traditional 401(k) (or Roth 401(k)) funds into a Traditional IRA (or Roth IRA) managed by MYRA. 

Important: Please ensure that you transfer Traditional 401(k) to Traditional IRA and Roth 401K to Roth IRA.

Note: This "Direct Rollover" request may be initiated by calling each of the 401(k) providers.

Here's the suggested process:

  1. Call your 401(k) provider (e.g. Fidelity, Vanguard)
  2. Tell the 401(k) providers that you are rolling over the money into a Traditional IRA (or Roth IRA) at Schwab Institutional
  3. Ask them to initiate a "Direct Rollover" to Schwab Institutional for the entire amount. Be sure to request for a "Direct Rollover" -- which is a tax-free distribution from one retirement plan to another retirement plan.
  4. For the "Direct Rollover", the 401(k) provider will send checks directly to Schwab. Check 1 should say "Schwab Institutional, Traditional IRA, FBO: Your Name" and Check 2 should say "Schwab Institutional, Roth IRA, FBO: Your Name", where FBO means "For Benefit Of". In the Memo Line, please request the 401(k) provider to include your respective Schwab Trad IRA or Schwab Roth IRA account number.
  5. In rare instances, the 401(k) will be unable to send the checks directly to Schwab. In this case, please request for a "60-Day Rollover" -- the check(s) will reach your home in about 5-7 business days. Once you receive the check(s), write your Schwab Trad IRA (or Roth IRA) account number in the Memo line of the check(s). Contact Schwab Customer Support: 800-435-4000 to locate a physical Schwab branch to deposit these checks, or request for a Mailing Address to mail these checks to Schwab Institutional.

Note: Rollover checks are NOT eligible for mobile deposit using the "Schwab Mobile" App.

Please note: The same process applies to your employer-sponsored 403(b) plan.

Disclaimer: When deciding whether to roll over a 401(k) account or another retirement account, you should carefully consider your personal situation and preferences. Relevant factors may include that: (i) 401(k) accounts may offer greater protection from creditors than IRAs. (ii) In some cases, the ability to take penalty-free distributions at an earlier age or to defer minimum required distributions. (iii) Some 401(k) accounts may also allow for loans or distributions in a broader set of circumstances than IRAs. (iv) Some 401(k) plans may also offer specific educational and advisory services to participants that are unavailable to some IRAs. (v) Some 401(k) plans may have lower fees and expenses than some IRAs. (vi) Some IRAs may offer a broader range of investment options that some 401(k) plans. (vii) Special tax rules may apply to the rollover of employer securities. You should research the details of your 401(k) and speak to a tax and other advisors about whether the features of your 401(k) are relevant to your personal situation.