Help Center

  • Can I roll over my IRA into a Swell IRA?

    Yes you can. However, if you are simply moving your IRA from another financial institution to Swell, and you do not need to use the funds, you should consider transferring the account rather than rolling it over. A transfer is non-reportable and can be done an unlimited number of times during any period -- whereas you can only process one IRA-to-IRA indirect rollover per year.

  • Can I move my 401(k) or other qualified benefit plan to my Swell IRA?

    Absolutely. People often roll over their previous 401(k) into an IRA as it allows for more investment options and control. Some IRAs will give you the option to select socially responsible stocks and often have better fee structures than a 401(k). Plus, it’s easier to consolidate your retirement funds and deposit your current contribution into a retirement account, which can’t be done in a previous 401(k).

    Ready to get started? Take a look at our Rollover Guide.

  • Which account type should I open to complete my 401(k) rollover?

    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.

    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

     

    FAQ_Rollover_Chart__1_.jpg

    *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.

     

     

  • Can I roll over my active 401(k) (or other employer-sponsored plan) into a Swell IRA?

    In most cases your plan provider will not let you roll over a retirement plan while it is still active. Typically, providers require you to be retired or no longer employed at the company to rollover a plan. Ask your provider to see what their rules are.

  • Can my spouse and I consolidate our 401(k)s into one Swell IRA?

    Unfortunately not, as we do not have joint accounts on our platform just yet. Your spouse will need to create his/her own Swell account to roll over their qualified plan into.

  • My 401(k) provider gave me paperwork to fill out. How can I get started?

    Sometimes your plan provider asks that you complete some paperwork before processing the rollover. Take a look at our Rollover Glossary below for some of the most commonly-requested fields:

    Account Number: Your 401(k) account number can be found on your account statement or your plan’s online portal. Don’t have access to either of these? Give your plan provider a call; they should be able to give it to you.

     

    Receiving Account Number: This is your Swell account number. You can find this number by logging in to your Swell account and selecting “Manage Accounts” from the “Settings & Info” tab on the navigation bar.

     

    Transaction Type: You can choose to do a Total or a Partial distribution. If you choose to do a partial distribution, you should also see a field where you can enter the dollar amount you would like to roll over.


    Method of Delivery: Your rollover can be transferred to us via check:

    Receiving Institution/ Check Instructions:

    Payable: Folio Investments Inc. FBO [Your Name]

    Memo section: Your Folio account number (found by clicking on ‘Settings & Info’ followed by ‘Manage Accounts’): “Rollover”

    Instruct your plan provider to mail the check to:

    Folio Investments Inc.

    8180 Greensboro Dr. 
    McLean, VA 22012
    8th Floor 

    Or, if they’re using a carrier other than USPS, instruct them to send it to the address below:

    Folio Investments Inc.

    8180 Greensboro Drive, 8th Floor

    McLean, VA 22102

     

    Tax Withholding: Direct Rollovers are not taxable. If there is a tax-withholding portion in your rollover form, you can either leave it blank or select the “opt out” option if it is available.

    Feel free to give us a call or send us an email if you see any unfamiliar terms or need some help getting started.

     

  • Can I roll over my 401(k) into a Roth IRA at Swell?

    If contributions to your existing retirement plan were made post-tax (i.e. if you have a Roth 401k or 403b), you can rollover your plan into a Roth IRA tax-free.

    If your retirement plan is a Traditional 401k or 403b, you can still roll over the funds into a Roth IRA, however it would be considered a Roth Conversion and the rollover would need to be reported as income at tax time -- meaning you would need to pay ordinary income tax on the funds.

    If you would like to move forward with a Roth Conversion, please reach out to our Investor Relations team at support@swellinvesting.com.

  • Are there any fees associated with rolling over my 401(k)?

    Luckily, direct rollovers are not considered taxable events.* Swell does not charge you any fees to rollover your retirement plan, but this may not be the case with your plan provider.

    Not to worry -- we’ll reimburse any transfer fees that your plan provider charges you when rolling over your retirement plan to Swell. Simply send us a statement displaying the fee and we’ll reimburse your Swell account ASAP.

     

    *If you roll your 401(k) into a Roth IRA, you’ll owe taxes on the rolled amount. If you want to rollover your funds without incurring taxes, stick with a traditional IRA.

     

     

  • How long does a rollover take?

    Rollovers typically take about 3 to 4 weeks to process. The timing is largely dependent on your plan provider.

  • How do I rollover my 401(k) or other qualified benefit plan to my Swell IRA?

     

    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.

     

    FAQ_Rollover_Chart__2_.jpg

    *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.

     

    Check Instructions:

    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
    8th Floor

     

    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.

     

  • Should I ask my 401(k) plan provider for a direct rollover or an indirect rollover?

    A: If you have not already requested a rollover, let your current plan provider know that you want to do a direct rollover.

    An indirect rollover involves a distribution from your 401(k) where your funds are distributed to you, rather than to a new retirement account.

    Indirect rollovers are a little more tricky because they're subject to withholding equal to 20% of the 401(k) distribution amount. Additionally, any retirement funds distributed to you that are not rolled over into a new retirement account within 60 days are considered to be a cash withdrawal and are subject to income tax, plus a possible 10% penalty if you’re younger than age 59 ½.