how to roll over my 401k plan in the company’s account to my scottrade IRA account to evade the tax penalty
Hi All,
I just moved to another company and want to roll over the money my 401k account from the previous company to my scottrade IRA account. Is there tax penalty to do so? How to do it? Every answer will be appreciated.
Thanks,
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August 15th, 2010 at 8:25 am
Call up Scotttrade and get the right forms. Then call up your 401(k) manager and get the right forms and tell them you want to do a DIRECT ROLLOVER. You have to do the direct roll over to avoid penalties and taxes. The 401(k) will cut a check and send it directly to Scotttrade.
Anything other than a direct rollover incurs taxes and penalties.
August 15th, 2010 at 8:27 am
There is no penalty if it’s done correctly:
Call the company holding your “old” 401(k) plan, or your former employer’s Human Resources department, and ask for the paperwork to do a “direct rollover”. They will send you a form which you will fill in & return, authorizing the old plan to send a check for your balance to Scottrade, (the check will be made out to “Scottrade, FBO Joe”, and since it will pass from one tax-deferred account to another, no taxable event should have taken place. You will also get a “Distribution Statement” which includes information you MUST enter on your next tax return.
August 15th, 2010 at 8:38 am
First of all, evade is not the word you want to use. Avoid is much better. Evading is illegal. Scottrade should be able to help you with the roll over. It is just some simple paperwork and there should not be a tax penalty to do so. Good luck and I’m glad you are rolling over and not just withdrawing (which would cause the 10% penalty plus income tax)!!
August 15th, 2010 at 9:30 am
Would you walk down the street and ask some 15 year old boy on a skateboard this very same question?
GO ASK SCOTTRADE and get their advice OR see any broker and get their advice… but, if you believe ANYTHING you are told on Yahoo Answers, you are just begging for financial suicide.
August 15th, 2010 at 10:13 am
There’s no tax or penalty as long as you roll over the entire amount. If you actually take the money, rather than having the company send the check directly to Scottrade, you have a limited time to roll it over. The easiest way would be to call Scottrade – they’ll guide you through the rollover.
August 15th, 2010 at 11:04 am
if you opened the ira and your 401k is cash………..get a check and deposit it in the ira a/c (save the paperwork…)…..if it is stocks….instruct the company to transfer the stock to your ira a/c…………..notify scott what you are doing……talk to them and they will probaby do it for you