How To Move A 401k From A Previous Employer - Summit Consulting Group, LLC

You’ve spent years building your 401(k) through steady contributions and market gains. Now that you’re leaving your current employer, that retirement account needs a new home—and the path you choose will shape your tax-deferred balance, paperwork burdens, and long-term peace of mind.

Each option—keeping your funds with your former employer, rolling into an IRA, transferring to your new company’s plan, or, only if absolutely necessary, cashing out—carries distinct tax implications, fee structures, and timing considerations. A single missed deadline or unintended distribution can trigger unexpected taxes and penalties. In this guide, we’ll walk you through every step: evaluating your choices, gathering the right documents, initiating a direct trustee-to-trustee transfer (or managing an indirect rollover), and confirming that each dollar lands exactly where you intend.

Follow these clear, methodical steps to move your 401(k) with confidence and avoid common pitfalls. And if you’d rather hand off the administrative work and ensure full ERISA compliance, Summit Consulting Group, LLC provides expert plan administration, fiduciary oversight, and seamless rollover support. Here’s how to get started.

Step 1: Understand Your 401(k) Options When Changing Jobs

Switching jobs is the perfect time to rethink where your retirement savings will live. You generally have four routes to consider:

Leave the money in your former employer’s plan
Roll over into an IRA
Transfer to your new employer’s plan
Cash out (only in dire emergencies)

Each choice carries trade-offs around fees, investment menus, and tax treatment. The IRS caps annual elective deferrals at $23,000 (plus a $7,500 catch-up for participants age 50 and older), with total annual additions (including employer match and profit-sharing) limited to $69,000 or $76,500 if you’re eligible for catch-up. For a deeper dive into plan features, see our 401k Plans Overview.

Below, we break down the pros and cons of each option so you can align your next move with your retirement timeline and risk tolerance.

Pros and Cons of Leaving Your 401(k) with Your Former Employer

Leaving your balance in the old plan can feel like the easiest choice, but it has its own trade-offs.

Benefits:

Continued tax-deferred growth
Potential access to institutionally priced funds not available to retail investors
Strong federal creditor protection under ERISA

Drawbacks:

No further contributions or 401(k) loans permitted
Withdrawal options may be limited (partial or in-service withdrawals often unavailable)
Plans may force-distribute small balances (typically under $1,000 or $5,000)

Benefits and Drawbacks of Rolling Over to an IRA

An IRA rollover offers flexibility, but it isn’t without considerations.

Benefits:

Wider investment universe: stocks, bonds, ETFs, mutual funds, alternative assets
Potential cost savings if you select a low-fee custodian
Ability to consolidate multiple retirement accounts into one

Drawbacks:

Varying state creditor protections—often not as robust as ERISA’s
Some IRA investments carry higher expense ratios than institutional 401(k) options
Funds may sit in cash during the rollover process, delaying market exposure

Advantages and Disadvantages of Transferring to a New Employer’s 401(k)

If your new plan accepts rollovers, consolidation can simplify record-keeping.

Advantages:

One account to monitor, with unified statements and online access
Continued access to plan-specific pricing and institutional share classes
Possible deferral of required minimum distributions (RMDs) past age 73 if you remain employed

Disadvantages:

Not all plans allow incoming rollovers; check your new employer’s policy first
Investment menus and fund expense ratios can vary widely from your old plan
New plan rules (loans, withdrawals, matching) may differ significantly

Why Cashing Out Your 401(k) Is Generally Not Recommended

Cashing out before retirement should be a last resort.

Ordinary income taxes apply to distributions, plus a 10% early withdrawal penalty if you’re under age 59½.
Example: a $50,000 payout could incur roughly $20,500 in taxes and penalties (assuming a 24% federal rate, 7% state tax, and 10% penalty).
Advisory note: Reserve a cash-out only for true emergencies; the long-term erosion of your retirement nest egg is hard to reverse.

Actionable tip: Before committing to any path, assess plan and IRA fee schedules, compare investment lineups, and map each option against your personal retirement timeline.

Step 2: Review Your Former Employer’s Plan Rules and Procedures

Before you can initiate a rollover, you need a clear picture of your former 401(k) plan’s mechanics: what documents to gather, which forms to complete, and any automatic deadlines that could affect your account. Start by obtaining and carefully reviewing the following:

Summary Plan Description (SPD)
Distribution Notice or rollover packet
Beneficiary designation form

Every plan administrator is bound by ERISA standards to furnish these materials upon request—if you don’t see them online, reach out to HR or your recordkeeper directly.

Locating Your Summary Plan Description (SPD)

The SPD is your roadmap to the plan’s rules, fees, investment options, and key deadlines. It typically covers:

Rollover eligibility and timing
Forced‐distribution thresholds for small balances
How loans and withdrawals are handled post‐termination

To access the SPD:

Check your company’s intranet or benefits portal.
Contact the HR department and ask for “the latest SPD and distribution notice.”
If all else fails, email or call the plan recordkeeper (e.g., the TPA or custodian) and reference your plan name and termination date.

Identifying Distribution and Rollover Forms

Most plans require you to complete specific paperwork before releasing funds. Common forms include:

Direct Rollover Request
Indirect Rollover Acknowledgment
Beneficiary Designation or update form

Action item: request electronic and hard-copy versions of these forms so you can complete them at your own pace. If you’ll name a spouse or trust as beneficiary, verify that your new IRA or 401(k) provider accepts the same designation language.

Understanding Forced Distribution Rules

ERISA and IRS rules dictate what happens if you take no action after leaving:

Balances under $1,000 may be automatically paid to you as a check (triggering taxes and penalties).
Balances between $1,000 and $5,000 are often rolled into an IRA by the plan administrator if you don’t respond.
Balances over $5,000 generally stay in the plan indefinitely, but you should confirm whether your plan caps the period for leaving funds behind.

If you miss the deadline, your plan sponsor is still required to follow Department of Labor guidance on forced distributions, but the outcome may not match your preferred rollover path. To stay in control, initiate your paperwork as soon as possible.

Sample Email Request to HR or Recordkeeper

Subject: Request for SPD, Distribution Notice, and Rollover Forms
 
Hello [HR/Plan Administrator Name], 
 
I separated employment on [Date] and would like to review my 401(k) distribution options. Could you please send me:

The current Summary Plan Description (SPD)
The distribution/rollover packet and any required forms
The beneficiary designation form for updating my records

If there are deadlines for forced distributions of small balances, please let me know those dates as well. Thank you for your assistance.

Best regards,
[Your Name]
[Former Employee ID or SSN Last Four]
[Contact Information]

By starting with the SPD and all related forms, you’ll have the clarity and paperwork in hand to complete your rollover—or to ask your administrator any follow-up questions—without risking an unintended cash-out or forced distribution. For more on ERISA compliance requirements, see the Department of Labor’s overview on ERISA standards.

Step 3: Compare Rollover Alternatives and Service Providers

When you’re ready to move your 401(k), the choice of where to send it can shape your investment experience, fees, and ongoing service. Focus your evaluation on these four criteria:

Fee structure: account-based fees, trading or advisory charges, and hidden administrative costs
Investment menu: breadth of funds, ETF selection, access to institutional share classes or specialty assets
Service quality: availability of fiduciary support, plan administration expertise, responsiveness of customer service
Integration and relationships: ability to work with existing custodians, recordkeepers, or advisors you already trust

Below, we explore four broad categories of rollover destinations and how they typically stack up against these criteria.

Summit Consulting Group, LLC as a Rollover Service Provider

Summit Consulting Group, LLC (Admin316) specializes in retirement plan administration and independent fiduciary services—ideal if you want expert oversight and seamless integration with your current plan providers.

Typical fee structure: flat or asset-based TPA and 3(16)/3(38) fiduciary fees, often transparent and bundled for administration and investment management
Account minimums: no minimum balance requirements when rolling over from an existing plan
Investment menu: you keep your existing lineup or delegate to Summit’s ERISA-compliant investment selection process
Customer support channels: dedicated plan administration team, fiduciary specialists, and ERISA compliance advisors

Because Summit Consulting Group is agnostic to custodians and recordkeepers, you can continue working with your existing brokerage or bank while gaining an extra layer of fiduciary protection and compliance.

Evaluating Major Brokerages and Banks

Large financial institutions like Fidelity, Charles Schwab, Vanguard, and many banks or credit unions offer IRA rollovers with broad access and familiar brand recognition.

Fee structure: most waive annual IRA maintenance fees but may charge commissions or advisory fees (0.25%–1.00%) depending on services used
Account minimums: often $0 to $1,000, making it easy to open an IRA with rollover assets
Investment menu: extensive selection of mutual funds, commission-free ETFs, individual stocks, bonds, and proprietary fund families
Customer support channels: online platforms, 24/7 phone support, branch locations, digital chat, and educational resources

These providers shine with low or no minimums and powerful trading platforms. However, if you require specialized fiduciary support or have an existing TPA, you may pay extra for advisory services you don’t need.

Considering Robo-Advisors and Independent Providers

Robo-advisors (Betterment, Wealthfront) and niche IRA custodians (Rocket Dollar, Equity Trust) tout automation, low fees, and a hands-off approach.

Fee structure: management fees typically range from 0.25% to 0.50% of assets under management, plus fund expense ratios
Account minimums: $0 to $5,000 depending on provider—some waive minimums for rollover assets
Investment menu: model portfolios of ETFs or mutual funds, often limited to pre-built strategies (target-date funds, risk-based mixes)
Customer support channels: primarily online or email support, with some offering access to CFP-certified advisors

If you favor automated rebalancing and minimal paperwork, robo-advisors can simplify your rollover. Just verify their experience handling retirement-plan transfers and read customer reviews on service reliability.

Actionable tip: before you decide, request fee schedules, sample investment lineups, and service-level agreements from each potential provider. A side-by-side comparison will reveal which option best aligns with your cost objectives, investment style, and desire for fiduciary oversight.

Step 4: Evaluate Tax Implications and Compliance Considerations

Even when you know where you want your retirement assets to land, the IRS has strict rules governing how they move from one tax-advantaged account to another. Missteps can lead to withholding, unexpected tax bills, or even penalties. In this section, we’ll break down the difference between direct and indirect rollovers, explain when and how much your plan must withhold, cover carve-out relief if you miss a deadline, and end with a simple checklist to keep your entire rollover onside with IRS rules.

Direct vs. Indirect Rollovers Explained

A direct rollover (sometimes called a trustee-to-trustee transfer) is the cleanest option. With a direct rollover, your former plan checks the box for tax compliance by sending funds straight to the new plan or IRA custodian. You never touch the money, and no taxes are withheld.

By contrast, an indirect rollover sends the distribution check to you personally. You then have 60 days to redeposit the full amount into another qualified plan or IRA. If you don’t complete the rollover within that window, the IRS treats the distribution as a taxable withdrawal, potentially triggering ordinary income tax and a 10% penalty if you’re under age 59½.

For detailed IRS guidance on rollovers, see IRS Topic 413: Rollovers.

Mandatory Withholding Requirements for Indirect Rollovers

Whenever you receive a distribution check, federal law requires the plan to withhold 20% of the taxable portion for income tax. That means:

If your distribution is $50,000, your check will only be $40,000.
You must come up with the additional $10,000 from other sources to complete a full rollover.

To calculate the gross distribution you need to roll over, you can use this formula:

gross_distribution = net_check_amount / (1 - 0.20)

So, if you receive $40,000:

gross_distribution = 40000 / 0.80 = 50000

If you roll over only the net check, the IRS will report the withheld amount as a distribution on your Form 1099-R, and you’ll owe tax on that $10,000 if you don’t replace it within 60 days.

Exceptions to the 60-Day Rollover Rule

Life happens, and you might accidentally miss the 60-day deadline. Fortunately, the IRS allows a one-time waiver in certain circumstances, including:

Errors by the financial institution (for example, they missed your request or mailed paperwork late)
Serious personal hardships (such as hospitalization)
Other “reasonable causes” as outlined in Revenue Procedure 2016-47

To request a waiver, you can attach a signed statement to your federal tax return explaining the reason you missed the deadline and cite Revenue Procedure 2016-47. The IRS will generally grant relief if your explanation shows that you acted in good faith and the delay was beyond your control.

At a minimum, you should—

Document dates of distribution, mailing, and attempted deposit
Retain copies of all correspondence with plan administrators
Keep medical records or other evidence of hardship, if applicable

By putting these pieces in place, you have a solid case for relief—and a clear audit trail should the IRS ever question your rollover.

Compliance Checklist

Before you finalize the rollover, run through this quick checklist:

Confirm you’ve elected a direct rollover whenever possible.
If an indirect rollover is unavoidable, calculate and redeposit the full gross amount within 60 days using the formula above.
Track key dates: distribution date, check issuance, and deposit date.
Note any withholding on Form 1099-R and plan to replace withheld amounts.
Gather proof of mailing or electronic transfer for all checks or instructions.
If you miss the deadline, prepare a statement citing Revenue Procedure 2016-47 and include supporting documentation with your tax return.

With these steps, you’ll satisfy IRS requirements, avoid surprise tax bills, and maintain the full tax-deferred benefit of your retirement savings.

Step 5: Gather Necessary Documentation and Account Information

Before you submit any paperwork, assemble all the facts and figures you’ll need to initiate a smooth rollover. Having every detail at your fingertips cuts down on follow-up calls and keeps your process on track.

Start by collecting:

Recent plan statements showing your current balance
Plan name, account number, and type (401(k), 403(b), etc.)
Rollover forms you obtained in Step 2 (Direct Rollover Request, Indirect Rollover Acknowledgment)
Your new account’s details: custodian name, account type, account number, and routing/transit information
Contact information for both plan administrators (phone, email, mailing address)

Next, use a simple spreadsheet to organize and track these details. Below is a template you can adapt:

Creating Your Rollover Information Spreadsheet

| Employer         | Plan Type | Account # | Balance   | Rollover Deadline | Admin Contact           | Destination Plan                        |
|------------------|-----------|-----------|-----------|-------------------|-------------------------|-----------------------------------------|
| Acme Corp        | 401(k)    | 12345678  | $45,200   | 08/15/2025        | Jane Doe, (555) 123-4567| Summit Consulting IRA FBO John Smith    |
| Beta Technologies| 403(b)    | 87654321  | $12,800   | 09/01/2025        | Tom Lee, tom.lee@record.com | Fidelity Rollover IRA Acct. #9876543 FBO John Smith |

Employer: Your previous company’s name
Plan Type: 401(k), 403(b), etc.
Account #: Plan account number or participant ID
Balance: Most recent statement value
Rollover Deadline: Any forced distribution cutoff or personal target date
Admin Contact: Who you’ll call/email if questions arise
Destination Plan: Exact name and FBO (“for the benefit of”) designation your new custodian requires

Filling out this sheet ensures you never scramble for a missing account number or miss a key deadline.

Contacting Plan Administrators

Even if you’ve already pinged HR or your recordkeeper for forms, it’s smart to confirm mailing addresses and any special instructions before you send your paperwork. Use a quick script like this:

Subject: 401(k) Rollover – Mailing Address and Instructions Needed

Hello [Administrator Name],

I’m preparing to complete a direct rollover from my former 401(k) plan (Account #12345678). Before I submit my paperwork, could you please confirm:

The exact mailing address for rollover documents
Any account title or “FBO” language required on the check or electronic transfer
Whether there are any additional instructions or notarization requirements

Thank you for your help. I want to ensure the request arrives correctly the first time.

Best regards,
John Smith
(555) 987-6543
john.smith@example.com

A brief call can accomplish the same—just verify you note the date, who you spoke with, and any special instructions.

Updating Beneficiary Forms Post-Rollover

After your funds land at the new custodian, don’t forget to revisit your beneficiary designations:

Request or download a beneficiary form from your new IRA or 401(k) provider
Review any existing names to ensure they match your estate plan (spouse, children, trust, etc.)
Submit the updated beneficiary form promptly—many custodians won’t honor changes made more than 30 days after account opening

Accurate beneficiary records mean your loved ones won’t get tangled up in paperwork if the unexpected happens.

With your documentation assembled, your spreadsheet tracking, and beneficiary information updated, you’re fully prepared to kick off the next step: submitting your direct rollover request and watching your retirement savings move without a hitch.

Step 6: Initiate a Direct Trustee-to-Trustee Rollover

Once you’ve chosen your rollover destination and gathered all necessary paperwork, it’s time to move your funds. A direct trustee-to-trustee rollover ensures the money travels straight from your former plan to your new account without ever passing through your hands—eliminating withholding and reducing IRS headaches.

Completing the Direct Rollover Form

Obtain the Direct Rollover Request form from your former plan administrator (you may find it in your distribution packet or via your HR portal).
Fill in your personal information exactly as it appears on your plan statement:
- Full name
- Social Security number (or participant ID)
- Date of birth
Sign and date the form. Some plans require a notarized signature—if so, plan a quick visit to a local notary public.
Double-check that you’ve selected “Direct Rollover” or “Trustee-to-Trustee Transfer” in the distribution type section.

Before you leave the form, scan or photograph a copy for your records. That way, you’ll have proof of your instructions in case anything goes awry.

Providing Destination Plan Details

Accurate destination information is critical. On the rollover form, you’ll typically see fields for:

Receiving institution name (e.g., Summit Consulting Group IRA Services or Fidelity Investments)
Account type (IRA, 401(k), Roth IRA, etc.)
Account number or participant ID
FBO designation: “For the Benefit of [Your Name]”

For example:

Receiving Institution: Summit Consulting Group, LLC
Account Type: Traditional IRA
Account Number: 123456789
Payable To: Summit Consulting Group, LLC FBO Jane Doe

If you’re unsure about the exact wording, contact your new custodian’s rollover department and request the precise “payee” line and mailing address. This prevents rejected checks or delayed electronic transfers.

Tracking the Transfer and Confirming Receipt

A direct rollover typically takes 10–21 business days. To stay on top of progress:

After submitting your form, ask the plan administrator for a confirmation email and any tracking or reference number.
Set calendar reminders two weeks after submission to check both your former plan’s portal and your new account statements.
If you see no activity by day 15, follow up with a brief email or phone call:

Hi [Administrator Name],
I submitted a direct rollover form on [date] for account #12345678. Can you confirm the transfer status or provide a tracking reference?
Thanks, [Your Name]

Once you see the funds in your new account, compare the transferred amount against your final statement from the old plan. If everything matches, you’ve successfully preserved your tax-deferred growth without any unexpected distributions.

Actionable tip: retain all correspondence—emails, confirmation pages, and statements—in a dedicated rollover folder (physical or digital). These records prove your intent and timing should you ever need to address an IRS inquiry or reconcile account discrepancies.

Step 7: Handle Indirect Rollovers When Direct Transfer Isn’t Available

Sometimes your new plan may not accept incoming rollovers, or timing pressures make a direct transfer impractical. In these cases, an indirect rollover—where the distribution check is made out to you—can bridge the gap. However, this method carries more moving parts, mandatory tax withholding, and a strict 60-day deadline. Follow these steps closely to keep your money tax-deferred and penalty-free.

Requesting Your Distribution Check

First, notify your former plan administrator that you need a distribution check for rollover purposes. On the distribution form:

Select “Indirect Rollover” or “Distribution to Participant for Rollover.”
Specify the gross amount you want to move (not the net after withholding).
Include a note or tick-box indicating your intent to roll over the entire distribution into another qualified plan or IRA.

By clearly marking the distribution as a rollover, you minimize confusion and ensure the administrator withholds exactly 20%—the only amount they can lawfully hold back. Always request the check be mailed to your address, not the new custodian, since you’ll need to control the timing of redeposit.

Calculating the Total Rollover Amount

Federal law requires 20% withholding on the taxable portion of an indirect distribution. To preserve your entire retirement balance, you must redeposit the gross amount (the distribution before withholding), not just the net check. Use this formula:

gross_distribution = net_check_amount / (1 – withholding_rate)

With a 20% withholding rate, it looks like:

gross_distribution = net_check_amount / 0.80

For example, if your check is $40,000:

gross_distribution = 40000 / 0.80 = 50000

That means you must come up with an extra $10,000 from other funds to roll over the full $50,000 within 60 days. If you only redeposit the $40,000, the IRS treats the $10,000 shortfall as a taxable distribution.

Completing the Indirect Rollover within 60 Days

Once you have the check in hand:

Deposit the full gross amount into your new 401(k) or IRA within 60 days of the distribution date.
Use overnight courier or same-day electronic transfer when possible, and retain proofs of delivery or electronic receipts.
Keep detailed records of the deposit date and the amount redeposited—these will be crucial if the IRS questions your rollover.

Missing the 60-day deadline converts any unreplaced portion into a taxable withdrawal, potentially subject to ordinary income tax and a 10% early withdrawal penalty if you’re under age 59½. If extraordinary circumstances prevented you from meeting the deadline, you may request a waiver under Revenue Procedure 2016-47—gather documentation of the error or hardship and attach a statement to your tax return.

By carefully following these steps—requesting a clear rollover check, calculating the true gross distribution, and redepositing within the IRS window—you can use an indirect rollover as a reliable fallback when direct transfers aren’t an option.

Step 8: Address Common Rollover Exceptions and Special Situations

Even with a clear rollover plan, a handful of situations can complicate the move. Here’s how to spot and navigate the most common exceptions so that you don’t accidentally trigger taxes or penalties.

Required Minimum Distributions and Hardship Withdrawals

Not all 401(k) distributions are eligible for rollover. Two frequent exceptions are:

• Required Minimum Distributions (RMDs): Once you hit age 73 (for most participants) or after you retire if still employed past that age, the IRS mandates annual withdrawals. RMDs must be taken in the plan that generates them and cannot be rolled over.
• Hardship Withdrawals and Corrective Distributions: If you’ve taken a hardship withdrawal or your employer has issued a corrective distribution (for an excess contribution, for example), those funds are treated as taxable distributions and aren’t eligible for rollover.

Before completing any rollover paperwork, verify that your distribution isn’t in one of these categories by reviewing your plan’s distribution notice or contacting the plan administrator directly.

Handling Employer Stock and NUA

If your 401(k) holds company stock, you may have built up Net Unrealized Appreciation (NUA)—the difference between the stock’s cost basis and its market value. When you roll stock into an IRA, you lose the opportunity to apply favorable capital gains treatment on that appreciation.

To explore strategies for handling company stock, see Fidelity’s guide on net unrealized appreciation. In some cases, it may make sense to take the stock distribution in-kind, pay ordinary income tax on the cost basis, and then hold the stock in a taxable account—preserving the NUA benefit when you sell.

Dealing with Outstanding Plan Loans

Many 401(k) plans allow participants to borrow against their balance while employed. When you leave the company, any unpaid loan balance is treated as a “deemed distribution” and will show up on your Form 1099-R as taxable income. To avoid this:

Repay the loan in full before your termination date, if plan rules permit.
If you can’t repay, plan to include the outstanding balance in your rollover. That means requesting a distribution for both your vested balance and the loan, then contributing the combined amount to a new plan or IRA within 60 days.

Failing to address an outstanding loan can lead to unexpected tax bills and penalties. Check your plan’s loan policy and consult your administrator early in the rollover process.

When to Call in the Pros

Special situations—like correcting excess deferrals, untangling a multi-employer plan, or managing complex investment holdings—often warrant expert guidance. For any rollover exception that feels murky, reach out to a qualified tax advisor or a retirement plan fiduciary. A quick consultation can save you from costly mistakes and ensure your rollover stays fully compliant with IRS and ERISA rules.

Step 9: Confirm Completion and Update Your Records

After the funds hit your new account, don’t assume the job is done. Thoroughly verifying each step ensures your rollover preserves its tax advantages and leaves a clear audit trail. Follow this three-part process to confirm success and secure your documentation.

Reconciling Account Balances

Start by comparing the final statement from your former plan with the initial balance in your new account:

Check that the amounts match exactly, apart from any planned rollover expenses or rounding differences.
If you performed an indirect rollover, verify you redeposited the full gross distribution (not just the net check) within the 60-day window.
Note any small discrepancies immediately—late fees, service charges, or lost yields can often be explained and corrected if caught early.

Make use of online portals or paper statements from both custodians, and record the date the funds entered your new account. A simple side-by-side table can help:

| Plan            | Ending Balance | New Account Opening Balance | Difference |
|-----------------|----------------|-----------------------------|------------|
| Acme Corp 401(k)| $45,200        | $45,200                     | $0         |

Handling Form 1099-R and Form 5498

Tax paperwork can be confusing, but timely, accurate filings keep you out of trouble:

Form 1099-R: Issued by your old plan administrator, this form reports distributions you received—direct rollovers show a distribution code indicating a trustee-to-trustee transfer, and indirect rollovers reflect any withholding.
Form 5498: Sent by your new IRA custodian after the rollover, this form documents the amount contributed to your IRA. It typically arrives by May of the following year.

When you file your tax return, report rollovers correctly:

For a direct rollover, enter the rollover amount on Form 1040 but note it as non-taxable.
For an indirect rollover, include the full distribution from Form 1099-R, then report the rollover contribution from Form 5498 to offset the taxable portion, including any funds you sourced to cover withholding.

Retain copies of both forms with your tax records to demonstrate that you preserved the full tax-deferred status of your retirement assets.

Storing Rollover Documentation Securely

Maintaining thorough records protects you against future questions and audits. Store your rollover files—forms, statements, email confirmations, and tax documents—in both physical and digital formats:

Physical: Use a fire-resistant safe or a locked file cabinet.
Digital: Scan all documents into PDF format, encrypt the files, and back them up to a secure cloud service or an encrypted external drive.

Keep these records for at least seven years—longer if your rollover involved complex situations like net unrealized appreciation or special waivers. A well-organized archive ensures you can quickly provide proof of your rollover timeline, allaying any IRS or plan administrator inquiries and preserving your peace of mind.

Step 10: Monitor and Optimize Your New Retirement Account

Your rollover isn’t a “set-and-forget” task. Once your funds are sitting comfortably in their new home, it’s essential to keep tabs on performance, stay aligned with your goals, and make adjustments as life and markets evolve. Make monitoring and optimization part of your financial routine to ensure your retirement account continues working as hard for you as you do for it.

Setting a Review Schedule

Consistency is key. Block out time on your calendar to revisit your account:

Quarterly Check-Ins: Look at performance, fee statements, and contribution progress every three months.
Annual Deep Dive: Once a year, conduct a full review—compare actual returns against your target benchmarks, re-evaluate your risk tolerance, and assess any life changes (job, family, health) that might warrant a strategy shift.

Tip: Create recurring calendar alerts labeled “Retirement Account Review” so your rollover doesn’t slip through the cracks.

Rebalancing Your Portfolio

Market swings can nudge your allocation away from its target mix. Rebalancing brings it back in line, locking in gains and managing risk:

Calendar Rebalancing: Reset to your target allocation at set intervals (e.g., January 1 and July 1).
Threshold Rebalancing: Rebalance whenever an asset class drifts beyond a specified band (often ±5%).

For example, if you aim for a 60% equity / 40% fixed-income split, a threshold rule might trigger a rebalance whenever equities exceed 65% or dip below 55%. Automated tools in many custodial platforms can execute these trades for you, or you can rebalance manually.

Adjusting Contributions and Catch-Up Options

Your work situation, pay increases, or changes in IRS limits may call for contribution tweaks:

Annual Deferral Updates: Each January, revisit your payroll elections. If you received a raise or bonus, consider upping your deferral rate by 1–2%.
Catch-Up Contributions: Once you turn 50, you’re eligible to contribute an extra “catch-up” amount. For 2025, that’s an additional $7,500 for 401(k)s or $1,000 for IRAs—use it to turbo-charge your savings.
Deadline Awareness: Traditional and Roth IRA contributions count for the prior tax year until the April tax-filing deadline. Schedule an ACH or direct deposit before that date to maximize your annual allowance.

Actionable tip: Automate any increases by setting up a “bump” in your payroll system or IRA custodian’s auto-contribution feature.

Professional oversight—whether from a trusted advisor, a TPA like Summit Consulting Group, LLC, or a certified financial planner—can help you stay on track, keep up with evolving regulations, and fine-tune your strategy as you inch closer to retirement. Regular monitoring and smart optimization make your retirement plan more than an account—they make it a living part of your financial future.

Next Steps to Secure Your Retirement Savings

You’ve navigated the critical steps of moving your 401(k)—from weighing your options to confirming the final transfer. Now it’s time to lock in that progress and keep your retirement on track. By following each step carefully, you’ve avoided common pitfalls like unintended distributions, missed deadlines, and unexpected tax or penalty hits. These next actions will help you maintain that momentum:

Review and reconcile. Double-check that the ending balance in your former plan matches the opening balance in your new account.
Update your records. File away all rollover paperwork, statements, and tax forms (1099-R, 5498) in both digital and physical archives.
Confirm beneficiaries. Make sure your current designations on the new account reflect your estate plan.
Set future reminders. Schedule quarterly and annual reviews, rebalance thresholds, and contribution increases or catch-up elections.

If any part of this process feels uncertain—whether it’s interpreting plan rules, handling specialized investments like company stock, or requesting an IRS waiver for a missed deadline—reach out for expert assistance. Your plan administrator can clarify paperwork deadlines and mailing instructions, and a qualified tax or financial professional can advise on complex scenarios.

For a turnkey solution that covers both administration and fiduciary compliance, consider partnering with Summit Consulting Group, LLC. As an independent third-party administrator and 3(16)/3(38) fiduciary, they provide hands-on rollover support, ERISA guidance, and seamless integration with your existing custodians. Visit the Summit Consulting Group, LLC homepage (https://www.geauxsummit401k.com) to learn how their team can help safeguard your retirement savings—so you can focus on your next chapter with confidence.