Just make it easy and let the broker handle it. They can take care of
the entire rollover process, from setting up the IRA to the ACAT of the
funds over into the new account. The check will never touch any hands
and most of the time it will simply be wired directly from the old
account to the new.

In article <1127321272.821727.280900[at]g44g2000cwa.googlegroups.com> ,
"Dave Dodson" <dave_and_darla[at]Juno.com> wrote:

- quote -

I was offering lifestyle advice to the original poster on how
to avoid the withholding. If you want to pay the withholding,
or take a risk that you have to pay it, that is your choice.
My advice was on how to avoid having to pay it, and that advice
is both correct and valid--don't get in the loop of having the
check sent to you, have it go company to company. If you don't
follow that advice, you risk trigging a withholding rule.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

- quote -

If the company is making the check out to the new custodian, there is
no legal requirement for them to take out the 20% withholding, whether
they mail the check to you or to the custodian. I know, because I have
conducted a rollover that way... the company made the check out to
Fidelity for the whole amount of the 401(k) account and mailed it to
me. I attached it to a Fidelity account application and mailed it to
Fidelity.

Dave

In article <1127231121.013942.120590[at]g14g2000cwa.googlegroups.com> ,
"Dave Dodson" <dave_and_darla[at]Juno.com> wrote:

- quote -

That is right when it comes to taxes. But the mere fact that
you are sent a check can trigger the need for withholding. While
you do get that money back when you file for income taxes, you
have to pay that money out of pocket when you do the roll-over.
If you fail to do that, the difference is then treated as taxable
income and a premature withdrawl, so you get both taxes and a
penalty.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

- quote -

Assuming you're moving the money from a 401k to an IRA (a Rollover IRA)
and you won't set up that IRA through the same custodian as your 401k
plan...call the custodian of the 401k plan, and tell them that you need
whatever forms are required to request a rollover to an outside IRA
(meaning with a different custodian). 90% of the time they'll say "OK",
10% of the time they'll say "you don't need a form, just request it
through your IRA custodian."

While waiting for those to arrive, set up the IRA with whatever mutual
fund company or brokerage firm or bank you want it at, indicating on the
forms (if they ask) that the account will be funded with a 401k
rollover, but you need the account to exist before you can do that.

When you get the forms from the 401k custodian, fill in the custodian
and account number for that rollover IRA you just set up. You'll send
the forms to the 401k custodian and anywhere from ~10 days to, you know,
12 months later (only slightly kidding) you'll see the money pop up in
your rollover IRA. Sometimes it's feet-dragging, other times it's just
by nature of the plan rules regarding timing of distributions.

Occasionally you won't need a form from the 401k custodian but that's
becoming less common. If it happens, you would use a transfer form from
the IRA custodian. Most 401k providers don't honor those though, they
have their own paperwork.

-Tad

- quote -

It is not your holding the check that makes it taxable... it is having
access to the funds. If the original custodian makes the check out to
your new custodian, they can send it to you for delivery to the new
custodian, yet you incur no tax liability. Many custodians like to do
it this way, I presume because you get a chance to verify that
everything is okay.

Dave

- quote -

It is not your holding the check that makes it taxable... it is having
access to the funds. If the original custodian makes the check out to
your new custodian, they can send it to you for delivery to the new
custodian, yet you incur no tax liability. Many custodians like to do
it this way, I presume because you get a chance to verify that
everything is okay.

Dave

In article <1k10j1dg146ijhblf1n13o3b3977tr6q9g[at]4ax.com> ,
"HW \"Skip\" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

The best way to do this is to pick the place where you want
to have your IRA account. Then ask them to do the rollover
for you. They will normally do all the paperwork. They
may also put it in the mail for you, or ask you to deliver
the paperwork.

This works especially well with a broker since they are
anxious to get your business, and they want to do the work
just to ensure it gets done.

- quote -

Companies will drag their feet, but then again, there is a
law on how long they have.

BTW, there is one trick to this business--make sure the
deal is company to company, and that you never hold the
check. If you get the check, there may be some withholding,
and you have to make up that difference. If you actually
cash the check, you might also have to pay taxes on it.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

- quote -

It is not your holding the check that makes it taxable... it is having
access to the funds. If the original custodian makes the check out to
your new custodian, they can send it to you for delivery to the new
custodian, yet you incur no tax liability. Many custodians like to do
it this way, I presume because you get a chance to verify that
everything is okay.

Dave

<<Do I need to request forms from my previous 401K providers?>
No, just provide your information to your new provider. They will take
care of the paperwork. Since they have a financial incentive, they
generally will take care of incoming transfers promptly.

John Cowart

The following was cross-posted. Since the moderators were in an
atypically pleasant mood, here is an edited copy of the post with
corrected headers.

Begin copy-----------------------------

Subject: 401K rollover - how does it usually work?
From: piclistguy[at]yahoo.com

I worked up until 2000. Since then I had my own business (no 401K) and
went back to college. I am about to resume full time employment yet
still have my 401K programs from my previous employer in 2000.

How does a 401K rollover usually work?
Do I need to request forms from my previous 401K providers?

I have heard that many custodians tend to drag their feet as they do
not have any financial interest in closing your account.

Seeking advice and recommendations.
Thanks


End copy-------------------------





-HW "Skip" Weldon
Columbia, SC