With everything else you have to worry about when leaving an employer, the rollover
of your retirement plan should be as easy and effortless as possible. Whether
you're changing jobs or entering retirement, we can help you take the next step.
If you'd like to roll your assets over to an IRA, follow these simple steps:
- Choose an IRA
First, determine whether you need a traditional or Roth IRA to preserve your existing tax benefits.
- Traditional rollover IRA – Typically, pre-tax contributions made to your retirement plan will be rolled directly into a traditional rollover IRA.
- Roth rollover IRA – Typically, after-tax contributions (e.g., Roth 401(k) plans) can be rolled directly into a Roth rollover IRA. Pre-tax contributions made to your former employer’s retirement plan can also be rolled directly into a Roth IRA, however you will owe taxes on the pre-tax amount rolled over.
Open your IRA account if you do not already have one established.
- Transfer funds from your former employer’s plan
Contact your former employer or plan administrator (contact information can typically be found on your last retirement plan statement) and request a direct rollover distribution payable to Wells Fargo. Often, you will need to complete a distribution form for this.
Be sure to:
Your former employer or plan administrator will either send the funds directly to Wells Fargo or you will receive a check in the mail to deposit into your Wells Fargo IRA. The check can be mailed, unsigned to:
- Ask your former employer or plan administrator to roll over the funds directly to Wells Fargo for benefit of (FBO) your name.
Reference both your name and the account number (if available) of the new IRA you set up.
Wells Fargo Funds
PO Box 8266
Boston, MA 02266-8266
If you have already received the assets from your qualified retirement plan, you have 60 days from when you received the distribution to roll your assets into an IRA. This is referred to as an indirect rollover, and it allows you to invest up to the entire amount you received from your employer, plus the 20% withheld for your federal taxes. Although the additional 20% withholding would be paid out of pocket now, you can recover it when you file your federal tax return.