CitiGroup 401k transfer
I moved out of CitiBank and have my previous 401K with them. I have tried to roll over my 401K account to Fidelity(current 401K). In the options, provided for rollover in CitiGroup 401K, it mentions as I will be charged penalty if I take a check on my name and there will be no charges for direct deposit to the current 401K financial institution. I contacted Fidelity Customer service regarding this and got to know they don't accept direct deposits for 401K. I should take a check on my name and deposit it into Fidelity. They are mentioning, that I won't incur any penalty for this which contradicts the information on Citi 401K website. Did anybody transfer money out of their Citi 401K account to Fidelity 401K without any penalties? TL;DR: Did anyone transfer retirement money from CitiGroup 401K to Fidelity 401K? If so how did you do it without any penalties? #citi #softwareengineer #retirement #401k
Yes, I transferred my Citi 401k to my Amazon 401k without any penalties. Citi mailed me a check made out to Fidelity, which I deposited into my new 401k electronically. Fidelity will be able to tell you exactly who the check should be made out to. Call the Citi helpline with this information.
This 👆the check has to be made out to Fidelity, not to you. If it’s made out to your it’s basically a withdrawal and will incur IRS penalties etc
Thanks for replying
The check should be made payable to Fidelity Investments Institutional Operations Company LLC. They can include a reference from stating “FBO YOUR Name”. Please ask your current company for a “Fidelity Approved Rollover In Form” which give this specific details. If the check is issued in your name, there will be Federal and State Tax deducted because it is not a direct rollover.
Thanks for your response. I will ask them this way
I’m actually in the process of leaving Citi right now. Anything helpful you can share when you left? I’m guessing for my 401k rollover process eventually I will just need to keep note of the Citi benefits number and give them a call when my new 401k with my new company is setup and ready to be deposited into? Did Citi pay you for any unused PTO you had when you left?
You will get paid for unused PTO
Few things to take care of before your last day: 1) Get an experience letter signed with your current manager with your duties and tumeframe. If you leave citi, it has to go through HR, which god only knows how much time it will take 2) Only PTO are paid. Better use up your sick leaves before you leave. They aren't paid 3) You will receive your citi 401k contribution during April of next year. Better to keep your 401k account open till then 4) Change the address on the portal if you are moving your home. You will receive tax receipt to this address next year
If you do a manual rollover, it is not a taxable event as long as you complete it within 60 days. If you haven't deposited it into another 401(k) within 60 days of taking the distribution, then you pay income tax and early withdrawal penalties.
Thanks for the response