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Subject:  Re: Pension from prior employer Date:  7/14/2001  11:06 PM
Author:  MDGrabhorn Number:  30747 of 88435

Nancy103 writes...

>>Is there a time limit the employer has to abide by once I have requested the funds be transferred? I have watched over the years many, many frustrated employees who left and had to wait up to a year and a half before they were finally able to obtain their monies? Do I open the IRA account first (with what $$) and then deposit the funds? Can the company make the check payable to XYZ Bank/Corp FBA me so that I can then just take the money and deposit it?? <<

To answer your first question, refer to your Summary Plan Description. This should tell you the Plan procedures for distributions. Depending on the Plan rules, it could take a while for the transfer. Stay diligent and persist with your requests for the transfer.

You can open an IRA account and fund it when the distribution occurs. Or you can wait to open the IRA account when the funds are available. Check with the trustee you plan on using.

If you have the check made payable to you, the Plan will withhold 20% of the distribution for taxes. This is mandatory. To avoid this headache, have the funds transferred directly to your IRA. Or, have Plan issue a check payable to the Trustee FBA You. This qualifies as a direct rollover. You should not be able to cash this check, but with some banks these days, dont test it. Forward the check to the IRA trustee.

Good luck to you.

MDGrabhorn, CFP
President -

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