Rolling Over Your 401(k) Shouldn't Be This Hard
The high job turnover of the last year has orphaned too many retirement accounts.
And don’t forget the notary.
Photographer: Jose A. Bernat Bacete/Moment RFThe percentage of U.S. workers who have changed or lost their jobs in the last year is double the annual rate during the previous two decades. And with that turnover comes a trail of orphaned 401(k) retirement accounts.
Those who opt to take their money with them and roll it over into a self-directed individual retirement account, or transfer it into a new employer's 401(k) plan, are learning how arduous the process can sometimes be. With so many 401(k) providers offering different plans that operate under an assortment of rules, there's no uniform procedure for former employees who want to move their retirement savings.
In turn, there are no clear-cut answers to common questions such as: How do I transfer money in a 401(k) account under my maiden name? Do I have to withhold anything for tax purposes? What do I do if I have company stock in my 401(k)?