where is my rollover?

[jIMOh]

I had a 401k with about $11k in it which I needed to roll into my etrade IRA
the 401k was with slavic 401k thru paychex
the IRA is with etrade

On Dec 22 I initiated the transfer
I have checked etrade daily, no deposit shown
today I checked slavic, it has a $0 balance

how long should the rollover process take?

 

[Montecfo]

I have done a few of these with E-Trade and it should not take that long. Suggest you touch base with them and find out what the holdup is, it sounds like there is one.

 

[Sue J]

I just started a rollover from a PenFed Roth IRA (my 10 year old 5% CDs have matured) to my Roth IRA at Vanguard. I initiated it at Vanguard and they told me it could be 4-6 WEEKS! Specifically, I should see the money leave PenFed within a few days but it may be awhile before it shows up in Vanguard.

I've done similar transactions before and I know it there was a scary gap when the money was in neither place but I don't think it 4-6 weeks

 

[jazz4cash]

This sounds like a trustee to trustee transfer which is different from a rollover. I initiated one around 12/17 at Blueprint Income. The funds left Fidelity on the 19th and the annuity company received them on the 8th but I'm still waiting for the funds to be credited. I have had them take 5 weeks moving between credit unions and I don't understand why the funds are debited before the receiving institution receives the check.

 

[Sunset]

This sounds like a trustee to trustee transfer which is different from a rollover. I initiated one around 12/17 at Blueprint Income. The funds left Fidelity on the 19th and the annuity company received them on the 8th but I'm still waiting for the funds to be credited. I have had them take 5 weeks moving between credit unions and I don't understand why the funds are debited before the receiving institution receives the check.

So the customer does not withdraw the money before the check is cashed would be my guess.

 

[Sue J]

Yes, you are right. Mine was a trustee to trustee transfer, not a rollover.

 

[jIMOh]

help me understand
401k to an IRA is a rollover, right?
Yes the trustee is changing too
an IRA at a bank to an IRA at a broker would be a trustee to trustee transfer?

 

[PaunchyPirate]

help me understand
401k to an IRA is a rollover, right?
Yes the trustee is changing too
an IRA at a bank to an IRA at a broker would be a trustee to trustee transfer?

Yes. I would call a 401k to an IRA to be a rollover. Pretty sure that's the right term in this case. And a movement of the investments from one IRA to another IRA would be a transfer.

 

[cathy63]

help me understand
401k to an IRA is a rollover, right?
Yes the trustee is changing too
an IRA at a bank to an IRA at a broker would be a trustee to trustee transfer?

The IRS calls both of these (and lots of other things) rollovers. What you are describing are just different methods for accomplishing a rollover.

There are three ways to rollover your money. You can use any one of these for any type of rollover as long as both institutions can accommodate your chosen method.

1) Direct -- you receive a check made out to "new custodian FBO you" and then you deliver it to the new custodian yourself. In my experience, this has been the fastest way to move money.
2) Trustee-to-trustee -- one institution sends the money to another. This method is usually slow.
3) 60-day rollover -- you receive a check made out to yourself, deposit it in your own bank account and then write out a new check (or ACH or wire transfer) to your new custodian within 60 days. I have never tried this.

 

[jIMOh]

The IRS calls both of these (and lots of other things) rollovers. What you are describing are just different methods for accomplishing a rollover.

There are three ways to rollover your money. You can use any one of these for any type of rollover as long as both institutions can accommodate your chosen method.

1) Direct -- you receive a check made out to "new custodian FBO you" and then you deliver it to the new custodian yourself. In my experience, this has been the fastest way to move money.
2) Trustee-to-trustee -- one institution sends the money to another. This method is usually slow.
3) 60-day rollover -- you receive a check made out to yourself, deposit it in your own bank account and then write out a new check (or ACH or wire transfer) to your new custodian within 60 days. I have never tried this.

appreciate the detail, thank you

 

[statsman]

General question to the forum. Can the originating financial institution be contacted to determine if the funds have indeed been transferred/cashed? At this point, hopefully the answer is no. If the answer is yes and you don't see it in the new IRA, I would contact the receiving financial institution to see if the funds are in a hold/pending.

In my case, I was only allowed option #1 by my ex-company's 401(k) plan, as described by cathy63 above. As fast as it was, it was still a slow process. Having the check mailed from the east coast to me on the west coast, then by me back to the east coast didn't give me any comfort.

 

[jIMOh]

General question to the forum. Can the originating financial institution be contacted to determine if the funds have indeed been transferred/cashed? At this point, hopefully the answer is no. If the answer is yes and you don't see it in the new IRA, I would contact the receiving financial institution to see if the funds are in a hold/pending.

In my case, I was only allowed option #1 by my ex-company's 401(k) plan, as described by cathy63 above. As fast as it was, it was still a slow process. Having the check mailed from the east coast to me on the west coast, then by me back to the east coast didn't give me any comfort.

The IRA I am rolling this into has 3 existing rollovers/ 3 old employers plans in it. The rollover process appears to have many "interesting" characteristics or use cases.

Transamerica always required me to use their paperwork and had no online process. Principal (had 2 401ks there) would allow me to initiate online, and when I was a financial advisor, there were numerous 401ks which would allow me to use the new custodian paperwork (meaning I could submit to TD ameritrade where funds would be placed, and that paperwork was good enough for most except transamerica).

 

[Car-Guy]

I've done several over the past ~10 years from various financial institutions to my primary brokerage account. IRA to IRA and 401k to IRA... As best as I can remember, the quickest was done in about 7 or 8 business days and the longest was closer to a month. In all cases they sent my funds VIA snail mail.

It's a little concerning to see 100's of K disappear from one account one day and then not appear for more than a week in the other... I don't know why they can't do a wire transfer.... (which usually takes a day) I'm sure they have some "excuse(s)".

 

[Montecfo]

It's good to do these trustee to trustee, and in kind of funds are material in order to Stay Fully Invested.

 

[jazz4cash]

I’ve always had the best experience having 401k or IRA funds made payable to the new custodian FBO jazz4cash and mailed to me. Fidelity does this readily and they will expedite for $25. The new custodian (credit union) usually balks but eventually accepts the check. This way I have more control since I get the check in about 7 days and I can hand deliver the check or use overnight mail to deliver. Ridiculous how onerous it is to move IRA and 401k assets between custodians.

 

[flyingaway]

If I have my 401k and IRA both with Fidelity, they actually show up together when I log in, can I just do the rollover online with a few clicks?

 

[jazz4cash]

If I have my 401k and IRA both with Fidelity, they actually show up together when I log in, can I just do the rollover online with a few clicks?

I have same setup with Fidelity. Anything workplace savings related requires a phone call. What are the rules for 401k distributions from your plan? Some are pro rata and others let you select which assets to transfer. I can arrange IRA distributions online but I think I have to call for IRA rollovers and transfers.

 

[Sue J]

I just started a trustee to trustee transfer from a PenFed Roth IRA (my 10 year old 5% CDs have matured) to my Roth IRA at Vanguard. I initiated it at Vanguard and they told me it could be 4-6 WEEKS! Specifically, I should see the money leave PenFed within a few days but it may be awhile before it shows up in Vanguard.

I've done similar transactions before and I know it there was a scary gap when the money was in neither place but I don't think it 4-6 weeks

Today (Feb 4th) I got an email from Vanguard that my transfer is complete! Not too bad, less than 4 weeks total and the funds will be available tomorrow.

 

[Montecfo]

Today (Feb 4th) I got an email from Vanguard that my transfer is complete! Not too bad, less than 4 weeks total and the funds will be available tomorrow.

No idea why this should take so long. It was cash, correct?

 

[ExFlyBoy5]

It seems ridiculous that it took so long. DW had a 401K with a previous employer that we moved to VG. It took about 10 business days to get it done...trustee to trustee, no paper check required.

I did *almost* flip out when I saw the 1099 that Merrill Lynch sent out (where the 401K was originally) thinking that they were showing it as a TAXABLE EVENT …but it wasn't. I was somewhat surprised to see the 1099 since I don't recall ever getting one for other roll overs we have done over the years.

 

[gauss]

It seems ridiculous that it took so long. DW had a 401K with a previous employer that we moved to VG. It took about 10 business days to get it done...trustee to trustee, no paper check required.

I did *almost* flip out when I saw the 1099 that Merrill Lynch sent out (where the 401K was originally) thinking that they were showing it as a TAXABLE EVENT …but it wasn't. I was somewhat surprised to see the 1099 since I don't recall ever getting one for other roll overs we have done over the years.

I think that transfers from 401ks to IRAs will nearly always generate a 1099-R and 5498.

Transfers between IRAs typically do not.

This is based on the full 1099-R instructions that are provided to the organizations issuing the 1099-Rs (ie the IRA custodian, 401k provider etc.) -- as opposed to the simplified 1099-R instructions that are written for the recipient.

-gauss

 

[jazz4cash]

My 5% CDs at Penfed matured so I downloaded the form and delivered it to Penfed in person. I waited while the CSR called the IRA Dept to confirm the form was properly completed. I had set the CDs to transfer to IRA shares at maturity. The funds left my account immediately and went out by snail mail to Navy Federal. It took one week. I could’ve paid extra for overnight.

Now I have another xfer going to Fido so I expect it will also take a week + or -.

 

[target2019]

In August 2020 I rolled over my Principal 401k to Schwab. I received the FBO check in a few days. I mailed check to Schwab and within 8 days total the funds were in place as expected.

The 1099 should be coded G.

Edit:
I did message my local Schwab rep about the time required to process check at Schwab (FL center) and they mentioned delays. They did give me a name of someone to call at the processing facility. He let me know the check was in a list. About an hour after the call he had moved things along and I saw the balance in my Rollover IRA.

Even though you don't have a check moving through systems, it sounds like there could be an approval delay at either end. So you need to call.

 

[statsman]

I think that transfers from 401ks to IRAs will nearly always generate a 1099-R and 5498.

Transfers between IRAs typically do not.

This is based on the full 1099-R instructions that are provided to the organizations issuing the 1099-Rs (ie the IRA custodian, 401k provider etc.) -- as opposed to the simplified 1099-R instructions that are written for the recipient.

It did for both my DW and I when we moved 401(k) funds in the past.