7

The proper answer is "no". The form is asking if the reason for the payment is that the (former) employer terminated the entire benefit plan (i.e., for everyone). This is not the case, you are simply changing jobs and making a rollover. ("Plan Termination" has a very specific meaning at the IRS.)


6

So first off, this should be handled as a rollover, not a "distribution". Rollovers have different rules than distributions. Therefore, your quote from the IRS does not apply. The simple answer is your entire Roth 401k amount can rollover to a Roth IRA with no penalties or taxes. If Fidelity is routing it differently then they're having an error in their ...


4

I believe any withdrawal of money from an IRA or 401k would be called a distribution and would trigger a 1099-R. A distribution means that money was removed from that account, and doesn't indicate what you did with the money. Even a direct rollover of 401k to a rollover IRA (where it is done within the brokerage and you never touch the money) would be a ...


3

The TSP has very low expenses on funds and most have annual expenses of about 0.041% of assets. They also have a lot of sophisticated withdrawal choices, like the ability to make a pseudo-pension by making monthly distributions. The level of service is also good, with a modern website and responsive and knowledgeable customer service (in my experience when ...


3

AFAIK, individual 401k accounts are supposed to be funded from self-employment earnings, not from rollovers from 401k plans of previous employers. So, check with your accountant before making opening an individual 401k account and getting your previous 401k plan to re-issue the checks to be payable to your individual 401k account. You might also want to ask ...


3

Talk to the TurboTax support. Generally, I've heard of several similar reports this year where people with 1099-R that had "G" marked properly got similar notices (direct rollover), and it appears to be a glitch in the IRS programming. If this is the case for you, then a simple response explaining that you reported correctly and attaching the copies of the ...


3

There are certain allowable reasons to withdraw money from a 401K. The desire to free your money from a "bad" plan is not one of them. A rollover is a special type of withdrawal that is only available after one leaves their current employer. So as long as you stay with your current company, you cannot rollover. [Exception: if you are over age 59.5] ...


3

You need to check with your employer. It is called an in-service rollover and it is up to your employer on whether or not it is allowed. There are a lot of articles on it but I would still talk to a professional before making the decision. And there are some new laws in place that put at least some responsibility on your employer to provide a 401k with ...


2

Most 401(k) plans do not accept rollovers from participants that are not active employees. You can contact the plan administrator for a distribution form that will allow you to open an IRA or another qualified account and roll the funds directly into that account. If you open an account with Fidelity or Vanguard, they can help you with the paperwork.


2

Post-86 After tax contributions to a 401k are after tax. The earnings on that money is taxable, but not the contributions. This means: If you invest $0 in pre-tax money in your 401k If you invest $10,000 in after-tax money in your 401k If your investment grows by $5,000 You'll have $15,000 in the 401k and $10,000 is considered after-tax and $5,000 is ...


2

The simplest way to consolidate the funds your old 401(k) plans is by doing what's called a Direct Rollover (whereby the funds go directly into the new plan and skips you completely) from each of the old plans into either an IRA that you establish with a provider of your choice or even into your current employer's 401(k) plan if that is available. That way, ...


2

You're confusing between "individual" 401k (they're called "Solo-401k" and are intended for self-employed), and Individual Retirement Account (IRA). You can't open a solo-401k without being self employed. You can open an IRA and roll over money from your old 401k to it. You cannot get a loan from IRA. You can ask the 401k plan manager to reissue the checks ...


2

Yes, its all about the paperwork. But realize that Form 5310 is filled out by the plan sponsor who is your now gone employer. Your 401k provider is only following instructions of whomever is control of the remains. Do remember that in the US the 401k as a retirement plan was accidental construct of the tax code. Legally the now defunct company is only on ...


1

No, I've done this a few times. I'll admit as the checks got larger, it was a bit more unsettling putting it in an envelope and mailing it. I would recommend: Using a reliable guaranteed delivery service (FedEx or Priority Mail Express) Taking a picture of the check and the envelope (including tracking number) Adding delivery verification if not already ...


1

No sir. The "unlimited" rule only applies to electronic "IRA-IRA transfer" transactions which you do by telling your bank the details of the other IRA account and having them directly transfer the money there electronically. The transaction is coded in the system as a transfer in all respects, and is entirely "hands-off" on your part. If they gave you a "...


1

My two-cents, read your plan document or Summary Plan Description. The availability of in-service withdrawals will vary by document. Moreover, many plans, especially those compliant with 404(c) of ERISA will allow for individual brokerage accounts. This is common for smaller plans. If so, you can request to direct your own investments in your own account. ...


1

You should ask your broker of choice for paperwork to move funds to them. You can't move into an account that doesn't exist, so when I wanted to move my money from an old pension plan to an IRA I set up the IRA with the broker first. When I told them it was to receive this money, they weren't asking for any initial deposit. You then have a broker and account ...


1

Every plan administrator has their own procedures for rollovers. In any case, you would start by browsing their website or calling them seeking information on rollover. You will need to arrange it with both your current and prior administrators. Usually the administrator will send the money directly to your current plan provider, keeping you out of the ...


1

I have trouble believing "they don't have the paperwork". It should be a fairly standard document, and if they can handle your account at all they should be able to handle this. You may need to do the "if you can't do it, let me speak to your supervisor -- and if they aren't there, give me their name and contact information" routine a few times. Threaten to ...


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