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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. This 60-day 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)

  2. Tell the 401(k) providers that you are rolling over the money into a Traditional IRA (or Roth IRA) at TD Ameritrade Institutional

  3. Ask them to initiate a "60-Day Rollover" for the entire amount. Be sure to request for a 60-Day Rollover -- which is a tax-free distribution to you from one retirement plan that you contribute to another retirement plan.

  4. The 401(k) provider will send you 1 or 2 checks depending on the type of 401(k). E.g. You will receive 2 checks, if you have a Traditional 401K and a Roth 401(k) plan -- Check 1 should say "TD Ameritrade Institutional - Traditional IRA - FBO Your Name" and Check 2 should say "TD Ameritrade Institutional - Roth IRA - FBO Your Name", where FBO means "For Benefit Of".

  5. The check(s) will reach your home in about 5-7 business days. Note: Some 401(k) providers might have the option to send the check(s) directly to TD Ameritrade (which removes Step 6 and Step 7 for you).

  6. Once you receive the check(s), write your TDA Traditional IRA (or Roth IRA) Account number in the Memo line of the check(s). Your account number is available in Account Settings on your MYRA Portal.

  7. To deposit the check(s), download the "AdvisorClient App" from your App Store and deposit online, or head over to the nearest TD Ameritrade branch (not TD Bank), and deposit your check(s).

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.