(August 24th, 2009)

In order to do a successful and timely rollover, make sure you have access or possess all of these documents. Carrying out a rollover properly can save you from getting in trouble with the IRS in terms of the 20% withholding tax, 10% early withdrawal penalty and lots of headache, so be sure to read below!

I) Get all 401k distribution forms from your past employer and contact your prior plan provider to request a rollover of your funds in to the account of your new employer (your prior plan provider may require that you complete a distribution form or other documentation). If your rollover deposit is not received by the new employer within 30 days, usually the new employer will contact the 401k administrator of your old employer to update on the status of funds being distributed.

II) Get a copy of your most recent 401k account statement by calling your plan administrator. Give them at least 5 business days’ notice before you expect the account statement to be in your mail, or preferably ask them to email it to you and print it out.

III) Make sure you have the names, Social Security Numbers (SSN) and dates of birth and addresses/contact information of all your beneficiaries.

IV) Have the name and address of your new 401k plan custodian ready on paper.

On top of the most recent account statement, have the following information of your old 401k custodian ready:

Plan Name
Plan Contact Name
Plan Contact Phone No.
Plan Account No.
Plan/IRA Provider Phone No.
Plan/IRA Provider Mailing Address
Plan/IRA Provider

Also, here is a sample checklist to prepare regarding your exact rollover amount:

a) The i) enclosed check or ii) check to come later iii) or wire transfer for $_______________ is an eligible rollover distribution.

b) My rollover funds are coming from i) qualified 401k tax plan or ii) IRA.

c) My rollover deposit i) does ____ ii) does not ______ include after-tax amounts from another qualified plan. If after-tax amounts are included, the total after-tax cost basis of this distribution is $_______________.

The meaning of cost basis is that the total amount of contributions you have made, excluding any earnings or gains you have made from your investments. If you are unsure of the after-tax cost basis amounts, contact your previous plan administrator and request this information. If you do not send this information, it will be assumed that the rollover deposit contains pre-tax 401k amounts only.