If so, how long does it take to get an IRA open and ready to accept the rollover?
I’m asking because my the 401(k) provider for my past employer is switching to a new fund menu that is very expensive, and there’s a deadline for me to do the rollover before the “blackout period” begins. I just want to roll it over to a Vanguard IRA, but I have no Vanguard accounts at all yet.
Thanks!
{ 3 comments… read them below or add one }
Yes. You establish the rollover IRA account first, then instruct the 401(k) custodian to do a direct rollover. They must have the IRA account number, custodian name & address, etc., in order to do that. You can open a Vanguard IRA on line instantly.
Contact Vanguard. They’ll walk you through it.
For me they opened a Vanguard IRA immediately with a zero balance. But I had other Vanguard funds so they didn’t need any additional information. Then they pretty much took care of the transfer on the spot with a conference call.
For security the company had to mail the check to me then I forwarded it to Vanguard. But that latter is not the timing you are concerned about.
Also there is no problem doing it after the changeover. I doubt the funds are front loaded so it won’t cost you much of anything if you miss the deadline. Often on changeovers like your company is doing there is a blackout period where you can’t touch it while they make the change. Those are often a month.
You might want to move all your funds in to a money market account right away if you have online access. Those should have the lowest fees even with a high fee company. And the funds have to be converted to cash anyway. They won’t transfer fund shares, only cash.
Good Luck.
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