Qualified retirement plans that were sponsored by a previous employer can be rolled to a Self-Directed IRA in a few easy steps. However, there are a few minor factors that can delay your rollover. Take a look at the tips below to ensure your direct rollover is not delayed so you can make the investments you know and love using your new Self-Directed IRA as quickly as possible.
#1 Rollover Rules by Account Type
Before you proceed with a direct rollover from your current employer plan (e. a 401K Plan, Profit Sharing Plan, Deferred Compensation Plan), review the IRS’s Rollover Chart and speak with your tax professional to ensure you can roll your account type to a Self-Directed IRA.
#2 Liquidation of Publicly Traded Assets
If you are currently invested in publicly traded assets (i.e. stocks or mutual funds), you will need to sell or “liquidate” those current holdings before requesting the rollover to be processed. This sale or liquidation allows the current Custodian or Administrator to send funds in the form of a check or wire to your Self-Directed IRA at Provident Trust Group.
#3 Outstanding Fees
It is important to ensure that your current retirement account does not have any outstanding fees or termination fees before requesting the direct rollover to a Self-Directed IRA. If there are outstanding fees that need to be collected, they may reject the direct rollover request. Alternatively, they may also deduct the past due balance from the amount you requested, causing an amount less than you requested to be rolled into your Self-Directed IRA.
#4 Correct & Complete Forms
This may sound minimal, but we have seen many requests get rejected by other Custodians and Administrators due to minor problems or missing items on forms. Every company has a unique form and different requirements for requests. You should always review the form and run it by your representative at your current Custodian or Administrator to ensure you are not overlooking anything. Every required field needs to be completed and all signatures should be dated within the last 30 days to avoid delays.
#5 Communication & Follow Up
After you have submitted your rollover request to your current Custodian or Administrator, review your account online with them to monitor the status of the rollover. If you do not see any movement of assets or funds by the 5th business day, it is best to contact them to ensure they received the request and that nothing is incorrect or missing with your request. Continue to keep consistent communication with your current Custodian or Administrator, and follow up weekly if you continue to see no movement to Provident Trust Group.
#6 Rollover Certification Form
To certify that the rollover to Provident Trust Group is a qualified rollover, we will need you to complete the Rollover Certification Form and submit it to firstname.lastname@example.org when the check or wire is in route to us from your previous Custodian or Administrator. Once the funds arrive at Provident Trust Group, we can then promptly and accurately allocate them as a rollover contribution to your Self-Directed IRA. If the Rollover Certification Form is not remitted to us timely, this can delay your investment selection and processing.
Always consult with your tax professional before proceeding with any type of rollover to ensure you choose the method that is best for you. You can review additional rollover tips here.