Community Chat

[Diva on The Q]

An impromptu visit with your former employer may be in order at this point.

[BLH]

You don't have to roll it over.  You can just leave it there if you want.

[Regal Bee]

Having a financial adviser is worth its weight in gold. Highly advise this. 

[Highlands72]

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@FrostyBabe1 wrote: @Warrior2022  

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Yes, they most certainly can issue a check. It's made out to whichever investment company you're sending the funds to, and noted "FBO Susie Smith". That's how I handled my own rollovers personally, and how we handled them for clients when I worked in investment management. IF the plan sponsor errs and makes the check out to the individual rather than the investment company, they have 60 days to deposit it to the rollover account without incurring penalties. Even then, the taxes and penalties can be waved if it can be shown that it was done in error. 

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-...

To the OP, I wish you the best in getting your 401K funds moved to wheverever you want them to be, but please, get your financial advisor involved to help you out with this rather than asking strangers on a message board. You need the RIGHT answers. 

. . .

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The above information is correct.

Assuming that you have a current 401K plan that is willing to accept the funds, this type of FBO (for the benefit of) check issued to the administrator of your current plan in your name is characterized as a "direct transfer," with conditions slightly different to a traditional IRA rollover. The FBO check can be sent directly from the releasing institution to the receiving institution or it can be sent to you if you prefer.

It does seem to be taking an unusually long time, but no need to panic if you are satisfied that your previous employer has a reputable plan and you are receiving statements or other documentation of how your vested funds are being handled.

The plan administrator (financial institution/investment firm) of your previous employer's plan is the one to contact as opposed to the human resources department or other representative of that employer.

[Jtdmum]

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@BirkiLady wrote:

@Jtdmum @Warrior2022  No, you do NOT want them to issue a check. It must be rolled over or you will have to pay taxes on the money! 

If you have a broker, have him/her fax the documents to the individual at your former company. Follow up within 24 hours to make sure he/she has completed all paperwork. Ask if you could pick it up at your earliest convenience and return everything to your current employer (or wherever you plan to rollover the 401K monies). A little pressure on your former employer may help them realize this is needed immediately! Be firm, but persistant. It is your 401K and, legally, you have every right to roll it over to another location in a timely manner. Best wishes.

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Birki lady- having the check issued IS rolling it into your new fund.  I may have the way the check is issued mixed, it may be to the company ie. Fidelity fund fbo jane doe. vs. jane doe fbo but the check will pass to you prior to your new company. The financial company you do business with should be able to direct you and give exact wording for the check.  At no time do you cash the check yourself, it passes to the retirement venue you are going to be using. 

[Warrior2022]

Thanks everyone.

I reached out to Fidelity again today.  They have sent notifications to my employer twice and did again today.

So I called former employer and now I know why people are quitting left and right.

I gave her my name and said, "I have not worked for company since April 1st and I need you to let Fidelity know I no longer work there."

She said "Why is Fidelity contacting you?"  I almost lost my mind.

I just repeated myself and she said she would open a ticket, whatever that means.

[CelticCrafter]

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@Warrior2022 wrote:

Thanks everyone.

I reached out to Fidelity again today.  They have sent notifications to my employer twice and did again today.

So I called former employer and now I know why people are quitting left and right.

I gave her my name and said, "I have not worked for company since April 1st and I need you to let Fidelity know I no longer work there."

She said "Why is Fidelity contacting you?"  I almost lost my mind.

I just repeated myself and she said she would open a ticket, whatever that means.

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That would not have been an acceptable answer for me.  It seems like it was a brush off, something said to appease you in the hopes that you would say okay and hang up.

[151949]

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@OKPrincess wrote:

Our financial advisor called and made the transfer for me.

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When my DH retired this is how we did too.

[VaBelle35]

My company uses Fidelity as their third party administrator for our 401k.

Fidelity uses a ticketing system.  This is preferable to just an email or other type of message because once the ticket goes into the system, it is tracked.

An email would go into a black hole.

My company's HR personnel will submit a ticket with Fidelity to research whatever needs to be researched.

Depending on how large your company is, Fidelity either receives the information of your separation through an electronic feed or by some sort of paper form sent by email or fax or US Mail.

Fidelity will research and either find the communication that shows you separated or ask the company/HR to re-send the information so that they can manually update your account so that you can process the roll over.

Re Rollovers

I personally would look at your new company's 401k and see what the fees are as well as the fun choices before rolling.  You may want to move the money into a personal IRA, not tied to an employer, with less fees and better funds.

[CelticCrafter]

@VaBelle35 - but Fidelity is telling the OP they haven't had any communication from the ex-employer so the ex-employer opening a ticket with Fidelity is just a waste of time.