Consolidating 401 k accounts

08-Sep-2020 22:11

As long as you handle the transfer of your accounts correctly, the transition should be seamless, and both tax & penalty-free.

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Under direct transfer, you simply complete the required paperwork that will enable your previous IRA trustee to make a direct transfer of IRA account proceeds into the new IRA trustee account.

It often happens as a result of job changes; you leave one job and roll an old 401(k) plan into an IRA.

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