Many times at the end of my meetings, after we have discussed all the statements that they have brought and we have the projections lined up. The client will say “I had an old 401(k) but I never did anything about it. I don’t have any statements anymore and I think they changed to a different company. “
As a common occurrence I have come up with the process for your to get back your old 401(k). First, call your previous employer HR department and ask them for the current 401(k) providers. Company sponsored plans move all the participants over to the new custodian and will have the providers information to give to you.
Most likely you will have to go through the phone tree and verify your identity. At that point you will be passed along to a representative who will verify this information again and they will ask you how can they help you! This is when you are going to ask to proceed with an IRA Rollover.
What does that mean? You are no longer working at the company and you will be opening up your new account to deposit your funds into so that you can manage it on your own. You can set up an account at any custodian like Schwab, Vanguard, or TD Ameritrade. These are the market leaders for low cost trading and have a plethora of investment options.
The helpful representative will ask you if you have seen the 30 day tax notification. This notification will be provided by the company within 30 days or you can view the one in the source notes. You will have 60 days after you receive the payment to make the deposit. If you do not do a direct rollover, the Plan is required to withhold 20% of the payment for federal income taxes 1.
At that point the representative will confirm the address and name of the new firm you would like the payment made out to. This check will either be mailed to you or the receiving firm.
My Company closed down and I can’t find my 401(k)
Whether you had to resign abruptly or was terminated from your job one of the last things you think to do is rollover your 401(k) into a self directed IRA. But many people can never find the time to do this and naturally in retirement you now have all the time in the world to find that lost money. But in the case where the company has been dissolved we are here to help.
Companies are required by law to mail abandoned funds to the owner’s last known address. If they’re returned or the owner can’t be reached, the assets must be relinquished to the state. In Washington it’s easy enough to find these funds visit www.ucp.dor.wa.gov/. Then enter your first and last name then search.
You will go through a claim process to get receive these funds and will need to verify your identity. Filing electronically will be the fastest way to process your claim. Lost 401(k) holding mutual funds could take up to 90 days to process. Create your username and password to check in along the way.
When you do receive your funds make sure to deposit it into your IRA within 60 days to avoid the 20% taxation. If you need help along the way we are always here to help. Feel free to contact us at 425-610-9226
https://www.irs.gov/retirement-plans/retirement-plan-participant-notices-distributions 1 https://www.irs.gov/pub/irs-drop/n-09-68.pdf
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