Why and when should I rollover my 401k, and how do I do it?
Sometimes it might be advisable to roll your 401(k) to your new employers plan or leave your 401(k) at your former employer altogether (there are new rules that allow you to withdraw money from your 401(k) between age 55 and 59 ½ without incurring the 10% early withdrawal penalty). You should always check with your advisor before initiating a rollover to make sure that a rollover is appropriate given your specific circumstances.
To initiate a rollover, obtain "rollover/distribution" paperwork from your former employer, and open an IRA. We at Sharkey, Howes & Javer will help you open the IRA and complete the rollover paperwork so that your employer can have your 401k transferred you’re your new IRA. Please request that your former custodian send the check for your IRA rollover to Sharkey, Howes & Javer so that we can ensure it gets sent to the proper custodian and deposited to your IRA account in a timely manner. You can avoid taxes by opting for a direct rollover (aka Trustee to Trustee transfer).
The rollover process is not difficult however it is very important that you work with a professional advisor to ensure that your funds are transferred properly into your Individual Retirement Account.
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