Financial To-Do List Success! Rolled Over Our 401k’s

401kToDoIn March we finally completed one of the biggest financial to-do’s  on our list, which we’ve had hanging over us for two and a half years!  We rolled over the 401k’s we had sitting around from the jobs we quit in 2011.  Part of the hesitation was to do with all the paper work, and then ensuring they completed as proper direct rollovers, and avoid paying any taxes as the result of some miscommunication.  Not to mention the rollovers were not very pressing, as our previous employer’s 401k provided very low fees and good investing options.  The primary driver was to consolidate our accounts and clean house a bit; having so many accounts is just a bit stressing.

The 401k provider had some somewhat strange requirements, that the rollover could not be requested through the 3rd party receiving the funds, and had to be sent to our home address.  The checks could be made out to the new account funds (a requirement of direct rollovers) but required a new IRA account number.  Without “available funds” or even exact fund amounts we had to set up empty traditional IRAs, although we both did already have Roth IRAs to rollover a portion of our Roth 401k’s (our employer did offer the Roth 401k option).  Setting up empty IRAs to get account numbers was easy enough with a phone call and letter of instruction, but is not within the standard account set-up process.

Now with account numbers we could request our rollovers be distributed to our IRA, via us.  Repackaged and forwarded on to our IRA providers at Vanguard and Dodge & Cox, and the transactions went through smoothly.  Two less accounts to keep track of and manage 🙂  We even got belated dividend rollover checks for something like 5 and 15 dollars which our IRA providers were nice enough to process (even through these don’t really fall into the additional contribution limit categories I’m still sure they cost more to process than they were worth).

What a relief 🙂

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