I am trying to rollover my previous employer 401k into my current Fidelity 401k. Fidelity customer support mentioned they only accept rollovers through cheques and not electronically(like direct deposit). When I am checking in my previous employers website, for cheques they only give the amount after reducing federal and state holdings. Did anyone else face this issue? How can I recover the withholded amount? TLDR: Fidelity 401k only accepting rollovers with cheque. Prev emp 401k has Federal and state withholdings for cheque. How to recover the withholded amount?
They will only withhold taxes if you tell them you want a distribution (not a rollover). If they make the check out in your name, you have 60 days to deposit it in a different retirement account (IRA, Roth IRA, 401k or Roth 401k) to avoid taxes and penalty. Regardless, no money should be withheld by default.
This. Looks like your previous employer/401k manager thinks you want to cashout. Explain them you just want to roll it over to new employers 401k
I have tried from my prev emp website. I should contact them and see what they would say
I currently started the process to move my previous company’s 401K to Fidelity and it seems pretty straightforward process - just that I need address change and it will take 2 weeks for that! Is it advisable to deposit money to current companys 401K account or to new IRA account?
IRA gives you more control over what you buy. Company 401k might not be a bad option if you're not the type to put too much thought into your investments and just throw it into a growth fund.
401k for all pre tax contributions if you want to do backdoor Roth
What GM said, sometimes you do have to do it by check but there’s no withholding provided it’s deposited to a valid retirement account within that 60 day window.
I did this a few months ago. I had my old 401k send me a check. I downloaded Fidelity NetBenefits app and deposited the check via an iPhone pic. Super easy.
Do you see any impact on tax?
Nope. I got a W2 from the previous bank but my accountant said it was coded for a rollover.
Can we cash out old employer 401k with out penalty?, if I don’t have another job
There are hardship rules, I suggest you look into them.
Almost every instance there’s a penalty. Read the IRS page for early withdrawal waivers.
What’s your previous 401k? My last 401k provider cut a check as a rollover and didn’t withhold any. It was a separate form. They should be able to send it and not withhold taxes…
Just call fidelity and they will call your previous employer and handle it
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That’s Bs. Just got mine done. Fidelity guys did it for me. Call them again
Thanks Zoom. I will check again