I recently was contacted by a former employer and told i need to terminate my 401k plan with them immediately. I had left money in there while finding new job and moving and all and not worried about it. But now the employer is saying get it out now - either by check/transfer/whatever they don't care. So I wanted to convert it into a traditional IRA and went with Fidelity - did the whole online account thing but never got an option or account number to do a 401k-traditional transfer. Any ideas how long this sort of thing takes to setup and when/how i get my acct number? or am I just going to have to cash out and take the tax hit?
EDIT : I HAVE ALREADY CALLED FIDELITY - This was my first step before posting this thread. I was just hoping for a little estimate with how long. Like 1-2 days, end of the week, something like that. Fidelity wouldn't give me a time estimate.
I am curious as to why your former employer wants you out of the plan immediately.
I thought most plans had provisions which gave employees the option of a distribution at termination of leaving your money in the plan. I wouldn't think the employer could just decide one day you have to get your money out.
Employer has his company going out of business - my money is safe but he is no longer able to maintain the fees that support the plan (ADP). Apparently they charge him X amount to keep accounts open and he doesn't want to pay that amount. I'm the last former employee left on the plan.
Called fidelity - they could not answer the "how long does it take" question. Thats what i figured and why i asked here. There stance over the phone is all institutions are different and some can take longer than others blah blah blah. I was hoping to just get an average amount of time some people had waited in the past.
Fidelity can handle everything for you as you already know. Or you can just take the check, endorse it, walk over to a Fidelity B&M and open an IRA account right there.
lostdude said: Fidelity can handle everything for you as you already know. Or you can just take the check, endorse it, walk over to a Fidelity B&M and open an IRA account right there.
I agree - this is the easiest thing to do
You don't even need to walk over to a B&M - you could deposit it and then cut a check to another plan. I think you have 60 or 90 days to do so.
CPAESQ said: lostdude said: Fidelity can handle everything for you as you already know. Or you can just take the check, endorse it, walk over to a Fidelity B&M and open an IRA account right there.
I agree - this is the easiest thing to do
You don't even need to walk over to a B&M - you could deposit it and then cut a check to another plan. I think you have 60 or 90 days to do so.Personally, I'd suggest doing a direct rollover. Fidelity should be willing (and eager) to help you fill out whatever forms are necessary to initiate the direct rollover. Get a copy of your most recent 401k account statement and give Fidelity a call.
CPAESQ said: lostdude said: Fidelity can handle everything for you as you already know. Or you can just take the check, endorse it, walk over to a Fidelity B&M and open an IRA account right there.
I agree - this is the easiest thing to do
You don't even need to walk over to a B&M - you could deposit it and then cut a check to another plan. I think you have 60 or 90 days to do so.
If you take a direct payment they will withhold 20% for federal taxes.
When I helped my wife get hers done from ADP to Fidelity, I just went to ADP's 401k site (mykplan.com) and went through the distribution/termination forms - or call them. Make sure to have the check paid to 'Fidelity,' not yourself (or they'll withhold 20% and you'll have to get it back when you file your 2008 taxes). Take the check to Fidelity and deposit it into the IRA account. Her check from ADP arrived within a week.
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