Four 401k Rollover Services Rules that May Surprise You

If you are considering 401(k) rollover services then you have many options. However, some of the rules might just make you do a double take and might even sway your opinion as to who you use for a rollover service.

Not Standard IRA Only

When you decide to rollover your 401(k) you might think that you can only do so in the form of a Standard IRA. Not so. You can rollover your 401(k) into any other type of qualified retirement plan which might include something that might seem obvious, such as a ROTH IRA or even obscure, such as an IRA LLC.

Checkbook Services Possible

Depending on the 401(k) rollover services you have been looking at you may or may not know that you can rollover your 401(k) funds into this type of self-directed IRA. Now, this can mean a couple of different things. It might mean that you can rollover your 401(k) into an IRA that will allow you to pick and choose certain stocks, mutual funds, and other such equity investments.

However, a true self-directed IRA would be one that allows you to have checkbook writing privileges. This means you can buy real estate and other types of investments for your IRA that might not be allowed with others. In other words, it totally puts you in control over all funds within your IRA.

Rollover While Still Employed

A common misconception is that you can’t rollover your 401(k) unless you no longer work at a specific company. This is common, but this is not always the case. Some companies will allow you to rollover your 401(k) while you are still an employee. In order to know for certain whether or not you can rollover your 401(k) while still being an employee you would have to check with your HR department and find out what the rules are. If they allow the rollover then you can execute one as you soon as you see fit.

Expediting Option

Although there is a 60-day window in which a rollover must be executed, there is no real time table that can be given definitively on the amount of time that a rollover will take. However, you can execute steps to ensure the rollover happens as fast as possible. First, you should let the custodian of your 401(k) know that a rollover will be forthcoming. You should also work to have all assets within the 401(k) liquidated before you start the rollover.

Of course the actual rollover time will vary and much of this depends on the 401(k) rollover services you are considering. Finding the right rollover service is the best way to ensure your 401(k) gets rolled over smoothly and gets put into the right type of IRA for your particular situation. Remember, the funds are yours, so make the most of them.

Click to learn more about what a truly self-directed IRA involves.

This entry was posted in Alternative Investing. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>