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Subject:  401k to IRA procedures Date:  8/11/1999  10:19 AM
Author:  pikapp383 Number:  13062 of 88063

Hello all,

I am currently helping my girlfriend transfer her 401k to an IRA and I ran into some unexpected problems at Waterhouse this morning.

It was my understanding that she needed to just fill out the forms at Waterhouse and they would contact the previous custodian and arrange all the paperwork. Also, she wanted to transfer shares of a mutual fund directly over to Waterhouse (it is one of the funds in their No Transaction Fee group).

I was told that she would have to contact the plan administrator directly and fill out some paperwork there and that then the administrator would liquidate the assets in the plan and send a check directly to Waterhouse.

While I was happy that we would not have to ferry the check from her previous employer to Waterhouse because that would ensure that there would be no withholding or 10% penalty, I was unhappy that we would have to talk to the plan administrator. The whole point of transferring was to get her money away from them because they have been a royal jerk to her, and they are ssssslllllooooooowwwwwwwwww.

When I moved my Roth from American Century to ETrade, I just filled out the forms at ETrade and they took care of the whole mess for me.

So, I guess my questions are, is it true that we HAVE to deal with the plan administrator to transfer the funds? Also, is it possible to transfer the shares of the fund directly without converting to cash at any time?

Thanks for reading all of this,
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