- 1). Contact your existing retirement account custodian or administrator. Ask what the plan regulations are regarding moving assets to an IRA account. Certain pensions and employer-sponsored plans may not allow you to move assets prior to retirement. Some 401(k) plan administrators may allow a partial move. IRAs should be completely flexible.
- 2). Request a distribution/rollover package from your existing retirement plan custodian if you are able to move or distribute assets.
- 3). Open an account with a brokerage firm. You may do this in person at a bank or brokerage firm or online with firms such as Charles Schwab or E*Trade. If you don't want to pay taxes on the money yet, open an IRA account. Fill out the required transfer paperwork if necessary. If you will be distributing funds and paying taxes, open a standard brokerage account in your name.
- 4). Fill out the distribution paperwork with your existing retirement custodian. If you are performing a direct rollover or IRA transfer, include the new IRA custodian account information to make sure the check is made payable to the new custodian for your benefit.
- 5). Wait for the account to fund. A distribution check takes approximately one week to arrive where a transfer may take up to six weeks.
- 6). Buy the stocks you want with the funds in the brokerage account.
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