10 Steps to Rollover Your 401k with Empower Retirement in the USA
Choose a Rollover Destination:
- Decide where you want to move your 401k funds, such as an Individual Retirement Account (IRA), a new employer’s qualified retirement plan, or a self-directed solo 401k plan.
Inform Your Former Employer:
- Let your former employer know that you want to roll over your 401k funds.
- Ensure that the check is payable to the financial services company or the new plan provider, depending on your chosen rollover destination.
Contact Empower Retirement:
- Reach out to Empower Retirement to initiate the rollover process.
- You can do this by phone or through their online platform, depending on the specific instructions provided by Empower.
Fill Out the Necessary Forms:
- If required, complete the rollover request form or other documentation provided by Empower to authorize the rollover.
Provide the Necessary Information:
- When speaking with Empower, be prepared to provide the details of your chosen rollover destination, such as the name of the new plan, account numbers, and any other relevant information.
Request a Direct Rollover:
- If you are rolling over your 401k funds to an IRA or a new employer’s plan, ask Empower for a direct rollover.
- This ensures that the funds are transferred directly to the new plan, avoiding any potential tax consequences.
Monitor the Rollover Process:
- Monitor your rollover’s progress to ensure correct and timely fund transfers.
- Contact Empower or your new plan provider if you have any questions or concerns during this process.
Deposit the Transfer Check (If Applicable):
- If you are rolling over your 401k funds to a self-directed solo 401k plan, you may receive a check from Empower Retirement.
- In this case, confirm that the check is made payable to your solo 401k plan, sign the back of the check as the trustee of the plan, and deposit the check directly into your solo 401k account.
Review Your Investment Options:
- Once your rollover is complete, review the investment options available in your new plan or IRA.
- Consider your financial goals and risk tolerance when choosing how to allocate your funds.
Update Your Beneficiaries:
After completing the rollover, review and update your beneficiaries if necessary.
In the event of your passing, this ensures that your retirement savings follow your wishes for distribution.
Supporting documents required for a rollover request
Here are some common supporting documents that may be required during the rollover process for 401k empower retirement, depending on your specific circumstances and retirement plan provider:
Form W-4R (Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions):
- You may choose to provide this form to the payer to elect withholding on the distribution.
Employer Plan Paperwork:
- Your former employer’s plan may require its own paperwork to be completed for the rollover. This could include plan-specific forms or additional signature requirements.
IRA Account Details:
- When initiating the rollover, you may need to provide your new IRA account details, including the account number and the name of the IRA provider.
- If the 401k company is sending a check for the rollover, your IRA institution may request specific instructions for writing the check and may require your IRA account number to be included. Follow these instructions carefully to avoid complications.
Proof of Separation from Service:
- If you are requesting a rollover from a 401k plan due to a separation from service, you may need to provide proof of your separation, such as a termination letter or a final pay stub.
- Some rollover requests may require you to provide identification documents, such as a copy of your driver’s license or a social security card, to verify your identity.
- Depending on the type of rollover and the requirements of your retirement plan provider, you may need to fill out additional forms, such as a Separation From Service form or a specific rollover request form.
During the rollover process, it’s essential to maintain communication with your former employer and the IRA provider to ensure a smooth and timely rollover. Keep meticulous records of all paperwork and documentation related to the rollover for your records and peace of mind.
How long does it take to complete a 401k rollover with Empower Retirement
Here’s a timeline outlining the general steps and timeframes involved in completing a 401k rollover with Empower Retirement:
Initiating the Rollover:
- Contact Empower Retirement to initiate the rollover process, either by phone or through their online platform.
- Timeframe: Minutes to hours, depending on availability and information provided.
Processing the Rollover Request:
- Empower Retirement will process your rollover request, which generally takes a few business days.
- Timeframe: Typically within a few business days, but may be longer with complications or additional documentation.
Transferring the Funds:
- The actual transfer of funds from your Empower 401(k) to your chosen rollover destination can vary.
- Timeframe: Can range from a few business days to several weeks, depending on coordination and paperwork.
Monitoring the Rollover Process:
- Keep a close eye on the progress of your rollover to ensure accuracy and timeliness.
- Timeframe: Ongoing monitoring during the rollover process.
Overall, the time required for completing a 401(k) rollover with Empower Retirement can vary from a few days to several weeks. Factors such as the complexity of the rollover and any necessary documentation can impact the timeline. Staying proactive and maintaining communication with Empower and your new plan provider is essential for a smooth transition of your retirement funds.
How can I check the status of my 401k rollover
Here’s a step-by-step guide to checking the status of your 401k rollover with Empower Retirement:
Gather Your Account Information:
- Have your Empower Retirement account details, including your login credentials, ready.
- Call Empower Retirement at: 800-345-2345
- TTY (for hearing-impaired individuals): 800-345-1833
Availability: Empower Retirement representatives are available to assist you during the following hours:
- Monday through Friday
- 8 a.m. to 9 p.m. EST
Log In to Your Empower Retirement Account:
- Visit the Empower Retirement website – https://www.empower-retirement.com/
- Log in to your account using your username and password.
Navigate to the Rollover Section:
- Once logged in, look for a section or tab related to rollovers or account transfers. The location may vary depending on the website’s layout.
Check for Updates:
- In the rollover section, you should see the status of your rollover request.
- The status may indicate “in progress,” “completed,” or “pending,” depending on the stage of the process.
Contact Empower Retirement (If Needed):
If you encounter any issues during the login process or have forgotten your username or password for your Empower Retirement account, you can reach out to Empower Retirement for assistance. Here’s how:
By following these steps, you can easily access and monitor the status of your 401(k) rollover with Empower Retirement, ensuring that you stay informed about the progress of your funds’ transfer.
What happens if the 60-day deadline for completing a 401k rollover is missed?
Here are the consequences and steps to consider if you miss the 60-day deadline for completing a 401(k) rollover with Empower Retirement:
- Failure to complete the rollover within the 60-day window may result in the distribution from your 401k being treated as a taxable event.
- The distributed amount will be subject to income tax, and if you are under the age of 59½, you may also be subject to a 10% early withdrawal penalty.
Limited Waiver Authority:
- While the 60-day rollover deadline generally cannot be extended, the IRS has limited authority to waive the deadline in certain circumstances.
- Securing a waiver from the IRS can be a complex and time-consuming process, with no guarantee that your request will be granted.
Consider Other Options:
- If you miss the 60-day deadline, explore alternative options for managing your retirement funds.
- You could consider rolling over the funds into an IRA through a direct trustee-to-trustee transfer, which does not have a 60-day deadline.
- Depending on your eligibility and contribution limits for the tax year, you may also be able to contribute the funds to an IRA as a regular contribution.
Seek Professional Advice:
- It’s crucial to consult with a financial advisor or tax professional if you have missed the 60-day rollover deadline.
- They can help you understand the specific implications for your situation, explore available options, and provide guidance based on your individual circumstances.
Missing the 60-day rollover deadline can have significant tax consequences, but there may still be avenues to manage your retirement funds effectively. Seeking professional advice is essential to make informed decisions about your retirement planning.
Are there any fees associated with a rollover request?
Here are some key points to consider regarding fees associated with a 401(k) rollover request:
- Rolling over your 401(k) into a new tax-advantaged retirement account does not incur a transfer fee. The rollover process itself is often free of charge.
- While the rollover itself may not incur fees, the new account you’re rolling your funds into may have its own fees. These can include maintenance fees, advisory fees, and other charges.
- It’s essential to carefully review and compare the fees associated with the new account to ensure you’re not paying more than you were with your old 401k.
- If you choose to invest your rollover funds in mutual funds or other managed products, you will be subject to the fees outlined in the prospectus of the chosen fund.
- Investment fees may vary depending on the specific fund and may be charged as a percentage of your investment.
IRA Rollover Fees:
- A study by The Pew Charitable Trusts found that IRA rollovers from 401(k) plans can result in higher fees for investors over the long term.
- This is because 401k plans often offer mutual funds with lower annual fees compared to costs incurred by IRA investors.
- Consider fees’ impact on retirement savings when choosing between a 401(k) and an IRA rollover; choose wisely for your future.
Understanding the various fees associated with a 401k rollover is crucial for making informed decisions about your retirement savings. Be sure to review all fee disclosures, compare options, and consider your long-term financial goals when planning your rollover.
In conclusion, rolling over your 401(k) with Empower Retirement involves a series of well-defined steps, from choosing your rollover destination to monitoring the process. It’s essential to be aware of potential fees, adhere to the 60-day rollover deadline, and seek professional guidance if needed. Understanding the implications and options can help you navigate this important financial decision and ensure a smooth transition of your retirement savings.