You need to have a Traditional Rollover IRA Account established. In the funding section, a letter will be created that informs your benefits administrator that you would like to directly rollover your distribution into your Interactive Brokers Rollover IRA account. In this article:
- Steps for RIAs to help their clients to do a direct rollover
- Steps for RIA clients to do a direct rollover on their own
First, you will have to sign a form authorizing the rollover. Next, your employer will transfer your payout to your IB IRA account, or they will provide you with a check made out to IB. If the latter is the case, once you receive the check you should deposit it immediately into your IB Rollover IRA. The deposit must be within the time frame permitted under the Internal Revenue Code.
If your 401(k) custodian is ACATS eligible, you may wish to review the assets held in your account to determine whether they are eligible to be held at IB. This can be performed through the contract search tool located on the IB website. Particular attention should be paid to mutual funds currently carried in your account as certain funds are proprietary and may not be transferable.
Please note the existing 401k or other retirement plans can only be transferred into a Traditional IRA Account. If you eventually want your 401k or other retirement plan in a Roth IRA, it must first be rolled into a Traditional IRA after which you can do a Roth IRA conversion.
Steps for RIAs to help their clients to do a direct rollover
1) Log in to your IB Account Management.
2) On the left navigation, go to "Transfer & Pay/ Transfer Funds."
3) Choose the client you want to help with and click "Continue."
4) Choose "Make a Deposit/ Roll Over Assets."
5) Put in the Amount and Custodian name, click "CREATE DEPOSIT"
6) Download the form and click FINISH. You can also find the rollover form here.
7) Send the form to your client to sign. Check deposit and wiring instructions are on the form.
Steps for RIAs clients to do a direct rollover on their own
The steps are very similar. Your client needs to log in to their IB Portal (not TradingFront's portal). See where can clients find IB usernames and passwords in TradingFront client portal?
1) Log in to IB Account Management.
2) On the left navigation, go to "Transfer & Pay/ Transfer Funds/Make a Deposit/ Direct Rollover Notification/ Roll Over Assets."
3) Put in the amount and custodian name, click "CREATE DEPOSIT."
4) Download the form and click FINISH. You can also find the rollover form here.
5) Fill out the form and send it to IB. Check deposit and wiring instructions are on the form.