Our Investor Relations team is happy to walk you through the rollover process. If you’re just getting started, feel free to shoot us an email or give us a call. It helps if you have a statement handy, but no statement, no problem.
More of a do-it-yourselfer? Follow our step-by-step guide below:
1.) Determine if your rollover is Indirect or Direct.
If you have not already requested a rollover, let your current plan provider know that you want to do a direct rollover -- this will enable you to avoid withholding taxes on the distribution.
An Indirect rollover is when you take the cash from your 401(k) and deposit into your bank account, and then transfer it to your retirement account. You have 60 days to do this once your plan provider has issued you the check.* If this sounds like you, go ahead and skip to part 4 below!
A Direct rollover is when the cash from your previous 401(k) is deposited directly into your retirement account. Here’s how that works:
2.) Determine whether your retirement plan is made up of Pre-tax or Roth contributions
Generally, individuals keep the same tax treatment (Traditional vs. Roth) when rolling over a retirement plan. Before getting started, make sure that your Swell IRA type (Traditional v. Roth) matches your retirement plan.
*Applies to rollover contributions after December 18, 2015. For more information regarding retirement plans and rollovers, visit Tax Information for Retirement Plans on the IRS website.
** Only one rollover in any 12-month period. However, you can likely do a “trustee-to-trustee transfer” between IRA’s, which are not limited.
Traditional (pre-tax):The most common type - contributions are made with pre-tax dollars. You'll pay the tax when you withdraw funds during retirement.
Roth (post-tax): Contributions made with money that's already been tax deducted
Don’t know whether your funds are Traditional or Roth? Your statement should tell you. If you don’t have a statement handy, give your plan provider a call. (Or give us a call -- we’re happy to get on the line with you!)
3.) Paperwork, paperwork, paperwork
Some plan providers ask that you complete a rollover form. If you’ve been given a form and are unfamiliar with any of the requested fields, take a look at our Rollover Form Glossary or contact us. Our Investor Relations team is here to make this as easy as possible.
4.) Almost done!
Once you’ve filled out your rollover form, please include the check instructions below when turning it in.
Please note that it is very important that the check be made payable as shown below and not to you directly.
Payable: Folio Investments Inc. FBO [Your Name]
Memo section: Your Folio account number (found by clicking on ‘Settings & Info’ followed by ‘Brokerage Account Info’): “Rollover”
Instruct your plan provider to mail the check to:
Folio Investments Inc.
8180 Greensboro Dr.
McLean, VA 22012
Or, if your provider is using a carrier other than USPS, instruct it to be sent to the address below:
Folio Investments Inc.
8180 Greensboro Drive, 8th Floor
McLean, VA 22102
Once your plan provider has given you confirmation that your rollover is in progress, let us know! We’ll keep an eye out for your incoming check.
Once we receive your rollover, we’ll email you with instructions on how to invest the funds into your Swell portfolio mix. It usually takes 3-4 weeks for the check to be made and sent from your provider to Swell.
*Any retirement funds that are received by you and not rolled over into a new plan within 60 days are considered to be a regular distribution and are subject to income taxes and an additional penalty if you are under age 59 1/2.