28 Aug How to Rollover Your Old 401(k) to MyRoboAdviser™
How to Rollover Your Old 401(k) to MyRoboAdviser™
Have you switched jobs recently or a while back and are wondering what to do with your old 401(k)? Worry no more and rollover your old 401(k) to a 3-Dimensional MyRoboAdviser portfolio!
First and foremost there is No fee or commission for rolling over your old 401(k) to MyRoboAdviser. However, your old provider may charge you for closing your account. You should ask your current plan provider whether you will incur any fees.
If you do not have an account set up with MyRoboAdviser prior to the rollover, then the first step in the process would be to set up an Individual Retirement Account. The majority of 401(k)’s are “pre-tax” and need to be rolled over into a Traditional IRA to maintain equal tax status. However, some people have Roth 401(k)’s which are funded with “after-tax” dollars. The Roth 401(k) would need to be rolled over into a Roth IRA.
Once you set up your account at MyRoboAdviser, the next step is to click the “Transfer or rollover” button in the top right of the screen, then select “start a rollover”. After you click “start a rollover” you will be prompted to choose what type of transfer or rollover. The four options here are “IRA Transfer”, 401(k) rollover”, “Other Employer Plans” and “Taxable Accounts”. In our case, we will select “401(k) rollover”. After you select “401(k) rollover, you will be asked a series of questions asking about what type of 401(k) (Traditional or Roth), the current provider and the estimated total account balance. Upon completion of these questions, Betterment, MyRoboAdviser’s Technology partner, will generate a personalized set of instructions with all of the steps including how the check should be issued and where it should be sent to complete your rollover.
After you generate the instructions from Betterment, you will want to contact your old 401(k) provider and let them know that you’re rolling over your funds. Your provider will then release your funds by issuing a check- either directly to Betterment, or they’ll be sent to you, which you can then forward to Betterment.
Direct Rollover: if the funds are sent directly to Betterment, this is what’s known as a direct rollover.
Indirect Rollover: if your old provider writes a check to you and then you deposit the funds into your MyRoboAdviser IRA. Please note: there is an important 60 day time period that you must be aware of if you’re doing an Indirect rollover.
- Ask your provider for an early distribution with no withholding. Your provider may call it a “premature distribution”, which is the same thing
- Deposit the funds into your MyRoboAdviser IRA within 60 days to avoid tax penalties.
How long does it take for my rollover to be completed?
Generally, it takes 7-10 business days after the funds have left your old provider for the funds to appear in your MyRoboAdviser account.
If you have any questions about holdings in your account or one of our models, or perhaps have another question about our services, you can contact us directly at 920.785.6012 or email us at firstname.lastname@example.org. My Robo Adviser™ has partnered with Betterment for Advisors as our technology solution to provide our services to our clients. Betterment maintains a support line you can also call for help with navigation, linking your accounts or other site functionality. You can call the Betterment for Advisors support line at 800.400.1571.
Last updated, August 28, 2018
Disclosures: Content is for informational purposes only and is not intended as personalized financial planning, legal or tax advice. Content is subject to change without notice. MyRoboAdviser.com provides investment recommendations based on a goals-based platform. Investments are not guaranteed, not bank insured, and may lose money. Investment Advisory Services provided to clients of My Robo Adviser™ by ETF Model Solutions, LLC, an SEC registered investment Adviser (registration does not imply any particular skill or training). Sub advisory services provided to clients of My Robo Adviser™ by Betterment, LLC, an SEC registered investment advisor. Brokerage services provided to clients of My Robo Adviser™ by Betterment Securities, an SEC registered broker-dealer and member FINRA/SIPC. Certain content on the Betterment, LLC website, including projected returns and tax-coordinated portfolios, may not apply to MyRoboAdviser.com’s investment recommendations. Clients must agree to provide and maintain accurate and current information with respect to their goals and financial circumstances. MyRoboAdviser.com does not provide financial planning or tax advice. Past performance is no guarantee of future results.