Navigating The Archaic, Convoluted, Complicated, And Completely Enraging 401(ok) Rollover Course of

I’ve try­ed to rollover my pri­or 401(ok) accounts up to now few weeks. As you may inform from the title, each­factor has gone easy­ly and eas­i­ly. HA! Simply child­ding. It’s been terrible. For­tu­nate­ly for all of you, I took detailed notes on the entire course of. If any Van­guard or Fideli­ty exec­u­tives learn this put up, sor­ry not sor­ry. This entire course of SUCKS. 

For the sake of sim­plic­i­ty, I shall be refer­ring to every account because the fol­low­ing in order to not con­fuse any­one. Since I am an over­achiev­er, I tried to do 3 dif­fer­ent accounts without delay. It’s wonderful. I’m complete­ly wonderful. 

Account A: My $200,000 401(ok) from my first com­pa­ny. I was there for five years and maxed it out all 5 years. It’s grown good­ly. Let’s name this one “Prime” for my pri­ma­ry retire­ment sav­ings. No pres­positive on get­ting this rolled over.

Account B: My $4,000 rollover IRA from the sec­ond com­pa­ny I labored for. I was there for six months. A good bal­ance to have however noth­ing like Prime. Let’s name this one “Tri­an­gle”. 

Account C: My $2,500 401(ok) from the third com­pa­ny I labored for. I was employed there for 7 months earlier than I left DC and moved to St. Louis. Let’s name this one “South­down”. 

A Rant About Rollovers

Earlier than we get into the small print of every account expe­ri­ence, let me simply rant about the entire rollover course of. You’re telling me, in 2022, that I have to name a human being on the cellphone and have them minimize a phys­i­cal test that shall be despatched to me so I can ship it to my cur­lease make use of­er’s ben­e­match cen­ter!? Don’t we now have issues just like the inter­internet that can be utilized to maneuver mon­ey round!? Why are we ship­ing bits of paper within the MAIL? There are such a lot of dif­fer­ent factors of fail­ure with this entire course of that it’s not even enjoyable­ny. There’s absolute­ly zero rea­son this course of must be so man­u­al. None.

Initiating the Course of*

*expe­ri­ences could fluctuate because of spe­cif­ic make use of­er necessities. 

Earlier than I begin­ed the method with my previous accounts, I referred to as my make use of­er’s ben­e­match cen­ter to see what I want­ed to do. It seems this was a nice concept as they need to ship me a paper kind to fill out and mail again with the paper­work from the oth­er insti­tu­tions. I acquired one pack­et of papers that I then copied into 3 sep­a­price units of paper­work, one for every account I was going to roll over. 

The lan­guage on this paper­work was con­fus­ing for me to learn the primary few occasions I try­ed it. I am a mon­ey-savvy per­son who’s used to learn­ing about mon­ey and the var­i­ous sorts of accounts. To con­fuse me means the aver­age Joe goes to have a onerous time with the method. There’s a lot of room for enhance­ment within the course of. A LOT. Did I males­tion this entire course of was terrible!? 

Rolling Over Account A

The 401(ok) account Prime has lived with Fideli­ty since its incep­tion. I saved it at Fideli­ty for the reason that charges have been tremendous low and the make investments­ment choices numer­ous. Additionally since I was­n’t plan­ning on going again to work after I left that com­pa­ny, I did­n’t see a rea­son to roll it over to a new account and I did­n’t need to have all that mon­ey in an IRA in case I want­ed to do a again­door IRA rollover. Now, how­ev­er, I really feel like sim­pli­fy­ing the num­ber of retire­ment accounts is definitely worth the has­sle. The jury continues to be out on that. 

To begin the method, I went on-line to their net­web site. The net­web site gave me a num­ber to name. After nav­i­gat­ing by means of the cellphone tree, I last­ly reached a human who informed me they’d have to ship me a test that I would then ship to the ultimate des­ti­na­tion. WHY.  Then the cus­tomer ser­vice rep fol­lowed their script and requested me a entire bunch of ques­tions on make investments­ment strate­gies and tried their finest to get me to maintain my mon­ey at Fideli­ty. Ugh. Unfor­tu­nate­ly, I referred to as after the shut of the mar­ket on the East Coast, so I needed to wait till the following day to promote all my make investments­ments and put the mon­ey right into a set­tle­ment account so they might concern the test. 

They have been additionally in a position to ship me the plan doc­u­males­ta­tion for this 401(ok). 

As soon as the test and plan doc­u­males­ta­tion arrived in my mail­field after a nerve-wrack­ing week, I stuffed out the types from my cur­lease make use of­er, put the test and paper­work within the mail, prayed, and waited. 

Rolling over Account B

Tri­an­gle begin­ed out as a 401(ok) account, however after I left the com­pa­ny they deemed it too small to cope with, so that they auto­mat­i­cal­ly rolled it over into an IRA. Thanks, Vanguard. 

First, I went to their net­web site. The net­web site was down, so I referred to as their num­ber. I ver­i­fied my iden­ti­ty to the primary per­son, however they have been unable to help me. They trans­ferred me to some­one who might, who then re-ver­i­fied my infor­ma­tion. I needed to login to the Van­guard net­web site and begin a kind that the ser­vice rep might then fill out for me. We solely acquired up to now earlier than the shortage of money within the set­tle­ment fund stymied us for that day. Three days lat­er, I referred to as again to con­tin­ue fill­ing out the shape. After I requested in regards to the doc­u­males­ta­tion required by my cur­lease make use of­er, they assured me the 1099‑R issued when the account rolled over can be suf­fi­cient. Spoil­ers: It was­n’t. At the least Van­guard was in a position to mail the test direct­ly to the ben­e­matches cen­ter with­out utilizing me because the intermediary. 

After the shape was stuffed out, I thought I was all accomplished till I want­ed to ship the 1099‑R. Alas, it was­n’t meant to be. I acquired an electronic mail from Van­guard there was doc­u­males­ta­tion miss­ing from my rollover. After I referred to as again in and did the entire ver­i­fy iden­ti­ty-trans­fer-ver­i­fy iden­ti­ty dance, they knowledgeable me I was miss­ing the shape to rollover the account to the Thrift Sav­ings Plan. Learn­er, it was at this second that I nar­row­ly keep away from­ed absolute­ly los­ing my shit. I then terse­ly knowledgeable the rep the rea­son I was miss­ing the shape was as a result of the rollover was­n’t going to the TSP. I needed to inform the rep what to write down down as rea­son­ing for the shape to not be hooked up since they did­n’t beneath­stand the sub­tle and con­fus­ing dif­fer­ences between my retire­ment plan and the Fed­er­al Gov­ern­males­t’s retire­ment plan. They actual­ly are comment­ably comparable. 

So after that was cleared up, I despatched within the 1099‑R the place it was hap­pi­ly settle for­ed they usually deposit­ed the test into my cur­lease 401(ok). AHAHAHA psych. There have been points with this one, too. 

Rolling over Account C

South­down had remained as a 401(ok) account with the unvest­ed mon­ey nonetheless in it. This one was additionally with Fideli­ty so I tacked this one onto the decision for Prime. Since they already had all of the infor­ma­tion from Prime, they knew what I want­ed and have been in a position to ship me the test and plan doc­u­males­ta­tion in an elec­tron­ic trans­fer. Simply child­ding — they mailed it together with the stuff for Prime. 

I plopped each­factor in an enve­lope, despatched it by means of the mail, and wait­ed nervously. 

Keep tuned for the sec­ond a part of this saga the place each­factor goes fallacious and I basi­cal­ly have to start out over from scratch. Yay me. 

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