how to roll over my 401k plan in the company's account to my scottrade IRA account to evade the tax penalty

Question

Hi All,

I just moved to another company and want to roll over the money my 401k account from the previous company to my scottrade IRA account. Is there tax penalty to do so? How to do it? Every answer will be appreciated.

Thanks,

Answer 1

Call up Scotttrade and get the right forms. Then call up your 401(k) manager and get the right forms and tell them you want to do a DIRECT ROLLOVER. You have to do the direct roll over to avoid penalties and taxes. The 401(k) will cut a check and send it directly to Scotttrade.

Anything other than a direct rollover incurs taxes and penalties.

Answer 2

There's no tax or penalty as long as you roll over the entire amount. If you actually take the money, rather than having the company send the check directly to Scottrade, you have a limited time to roll it over. The easiest way would be to call Scottrade - they'll guide you through the rollover.

Answer 3

Scottrade Rollover Ira

Answer 4

First of all, evade is not the word you want to use. Avoid is much better. Evading is illegal. Scottrade should be able to help you with the roll over. It is just some simple paperwork and there should not be a tax penalty to do so. Good luck and I'm glad you are rolling over and not just withdrawing (which would cause the 10% penalty plus income tax)!!

Answer 5

Not when you do it or have done as a trustee to trustee transfer from the 401K trustee directly to your IRA account holder trustee then you would not touch any of the 138.41 at all and it would then all be in your IRA account at that time in your life with out having to pay the 10% early withdrawal penalty plus the federal income tax at your marginal tax rate when you correctly complete your 1040 federal income tax return for the tax year that you choose to do this in. If you do choose to get the funds in to hands and then do the ROLLOVER within the 60 income tax free rollover period that is available to you for this purpose you would have to add the amount that they will withhold back into the 401K amount that you receive by check to make up the total 138.41 for the total 401K distribution that you be rolling over to your IRA free of any federal income tax and also you would not have any amount of the early withdrawal penalty that you would have to pay when you do complete your 1040 income tax return during the next year tax filing season. Just remember that the rollover of the funds by you if you do receive the amount has be done before the end of the 60 day income tax free time period ends. Hope that you find the above enclosed information useful. 09/13/2011

Answer 6

This Site Might Help You.

RE:
how to roll over my 401k plan in the company's account to my scottrade IRA account to evade the tax penalty
Hi All,

I just moved to another company and want to roll over the money my 401k account from the previous company to my scottrade IRA account. Is there tax penalty to do so? How to do it? Every answer will be appreciated.

Thanks,

Answer 7

There is no penalty if it's done correctly:

Call the company holding your "old" 401(k) plan, or your former employer's Human Resources department, and ask for the paperwork to do a "direct rollover". They will send you a form which you will fill in & return, authorizing the old plan to send a check for your balance to Scottrade, (the check will be made out to "Scottrade, FBO Joe", and since it will pass from one tax-deferred account to another, no taxable event should have taken place. You will also get a "Distribution Statement" which includes information you MUST enter on your next tax return.

Answer 8

Would you walk down the street and ask some 15 year old boy on a skateboard this very same question?

GO ASK SCOTTRADE and get their advice OR see any broker and get their advice... but, if you believe ANYTHING you are told on Yahoo Answers, you are just begging for financial suicide.

Answer 9

if you opened the ira and your 401k is cash...........get a check and deposit it in the ira a/c (save the paperwork...).....if it is stocks....instruct the company to transfer the stock to your ira a/c..............notify scott what you are doing......talk to them and they will probaby do it for you

Answer 10

Was curious on the answer too