Direct Rollover from a Qualified Employer Plan
A rollover is the process of moving funds from a qualified employer plan such as a 401(k), 403(b), 457, Pension, TSP, etc.
This process is referred to as a “direct rollover” and is specifically different from a “transfer” or an “indirect rollover”. It helps to use the correct terminology when dealing with your current institution and Kingdom Trust Co. to avoid confusion and ensure you receive the correct guidance.
A direct rollover is the preferred method of moving qualified plan funds and is not limited by rule in amount or frequency. (An indirect rollover is limited in frequency to one such transaction per 12 months.)
A rollover is initiated by contacting your current plan administrator and instructing them to issue funds to the new IRA at Kingdom Trust Co.
Timing of Rollover Request
Many plan administrators do not require an account number on the new IRA in order to issue funds, though some do. You may or may not need to wait until the IRA has been established and the account number issued before initiating the rollover.
Rollover Request Process
Download the Kingdom Trust Co. Delivery Instructions form and contact your current plan administrator to initiate the rollover.
Many administrators will accept rollover instructions by phone.
Some firms have a form used to initiate the request. Their customer service should be able to help you complete the form with the information included in the KTC Delivery Instructions.
A handful of firms and most government sponsored plans will request either a “Letter of Acceptance” from Kingdom Trust Co. or Kingdom’s signature on their form. Contact Kingdom Trust Co. directly by phone if this is the case. They will tell you what they need from you in order to fulfil such requests.
The method of delivery varies based on the policies of the plan administrator.
Funds are always issued to Kingdom Trust Co. FBO your IRA, not to you personally.
Funds may be sent by:
- Wire (rare)
- Check mailed to Kingdom Trust Co.
- Check mailed to you, which you will then forward to Kingdom Trust Co. (Do not endorse the check.)
It is helpful to ask about the method of delivery when making your rollover request, to you can know what to expect, and the potential timeline for receipt of funds at Kingdom Trust Co.
Deposit Instructions to Kingdom
Regardless of the method of funds delivery, you will need to provide a Deposit Instructions form to Kingdom Trust Co. This tells them how to code the receipt of funds into your account.
The form is very simple, just requiring your information and the deposit amount, then the indication of this deposit as a “Direct Rollover”.
If KTC receives funds directly, they will then contact you requesting this form. You can send the form by fax or email.
If the prior plan administrator mails the check to you, include the Deposit Instructions form along with the check when you send it to KTC.