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Jeff Dixon uDirect IRA Services

By: Jeffrey Dixon, MBA, CISP

Have you left your employer?  If you recently changed jobs, you are not alone.  The global pandemic has affected many and as a result he U.S. Bureau of Labor Statistics reported the U.S. February 2021 unemployment rate at 6.2 percent. If you worked for a business offering a 401(k), 403(b), 457, Defined Benefits, etc. and you participated in the plan, uDirect IRA Services can help you move those funds into a Self-Directed IRA.

What if I Still Work for the Employer?

You can rollover retirement funds after you have left employment.  On occasion, you can move funds while you are still employed with the company because of a clause in most 401(k) plans allowing this. Moving funds while you are still employed is referred to as an “In-Service Transfer”.  The In-Service Transfer is not commonly allowed, however.  Check with your plan administrator to find out.

How Do I Move Funds?

When moving 401k funds into a Self-Directed IRA start by opening an account first.  You will find the link to open an account HERE.  Many 401k custodians want the account number of the new IRA, so be ready to provide it. The plan administrator of your employer’s plan will send your funds by check. The check would be made payable to American Estate & Trust, LC FBO (Client name) IRA. Have the 401k custodian mail the check to you and then forward it.  Alternatively, they can mail the check to our custodian, American Estate & Trust, 6900 Westcliff Dr, Ste 603, Las Vegas, NV  89145-0199.

Do not endorse the check.

There is a mandatory 10-day hold on the funds before you can invest them.

What Kind of Account Should I Open?

If the funds in the 401k were pre-tax funds, you would open a Traditional IRA to receive them. Other pre-tax accounts include the SEP and SIMPLE IRA for those who are self-employed.  If there are any after-tax funds in the account, they would go into a Roth IRA. Here is a link to the different types of retirement accounts.

Questions?

If you have any questions about this process, please contact us at 714-831-1866 or info@uDirectira.com. We will be happy to assist with your questions.

Attention:

uDirect IRA Services staff is working both from home and from our offices in response to COVID-19. Rest assured, we are fully operational and ready to help with your retirement needs.