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401(k) / 403(b) Rollovers

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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 Schwab Institutional

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

  4. If you requested a "Direct Rollover" -- the 401(k) provider will send checks directly to Schwab. If you requested a "60-Day Rollover" -- the 401(K) provider will mail 1 or 2 checks to you 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 "Schwab Traditional IRA - FBO Your Name" and Check 2 should say "Schwab 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: For "Direct Rollovers" when the 401(k) providers sends check(s) directly to Schwab (this removes Step 6 and Step 7 for you).

  6. Once you receive the check(s), write your Schwab Traditional IRA (or Roth IRA) Account number in the Memo line of the check(s). Your account number on SchwabAlliance.com

  7. To deposit the check(s), download the "Schwab Mobile" App from your App Store and deposit online (Schwab Mobile >> Move Money >> Deposit Checks), or head over to the nearest Schwab branch, 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.