Rollover IRA — How to Move the Money
I have a 401k from a former employer that I am rolling over to an IRA somewhere else. What is the best way to transfer the funds? It is being recommended that I have a check sent to the new place in their name with my account number. I’m not sure I’m comfortable with that. If that’s normal & safe, I will follow that recommendation. Is there a better way that you would advise?
Thank you.
Terry Says
No, that is not the way it is done. Have the new custodian (presumably a place like Fidelity or Vanguard) contact your former employer and they will arrange for a direct transfer. Typically the funds are wired into the new account. Talk to the new custodian about the procedure. Do NOT take a check. That could result in a tax nightmare, even though you do have time to roll it over. Far better to do a direct transfer.
