Need help with 401K rollover to VGD

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kaiz129
Posts: 4
Joined: Sun Jul 03, 2022 4:41 pm

Need help with 401K rollover to VGD

Post by kaiz129 »

Hi folks,

I have a traditional IRA with Vanguard and I am thinking about roll over a 401K to it. Just changed my job. I called vanguard customer service and was told I would have to request the 401K company to issue a check to Vanguard. The whole process takes 6-8 weeks. Pretty long.

Is there any more efficient way to do it? I know other MF companies like Fidelity allows wire transfer to make such transactions.

I would appreciate it if anyone has any advices on this.
niagara_guy
Posts: 1168
Joined: Tue Feb 11, 2020 7:32 am

Re: Need help with 401K rollover to VGD

Post by niagara_guy »

If the 401k company also offers IRAs (for example, Fidelity) then ask Vanguard how long it will take to move an IRA from them to Vanguard. If it's quicker then convert the 401k to an IRA then move it.
niagara_guy
Posts: 1168
Joined: Tue Feb 11, 2020 7:32 am

Re: Need help with 401K rollover to VGD

Post by niagara_guy »

Make sure you know all the fees that are going to be charged at the 401k provider. Some charge fees for everything.
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retired@50
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Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Need help with 401K rollover to VGD

Post by retired@50 »

kaiz129 wrote: Mon Jul 04, 2022 10:22 pm Is there any more efficient way to do it?
Welcome to the forum. :happy

Dealing with 401k money is usually slow, so that's nothing new. Most 401k plans only know one way to disburse, by check.

A couple possible tips to speed up the process.
1. Have the check mailed (from the 401k) via overnight shipping for an extra fee. (UPS or FedEx) letter size package should suffice.

2. Use the Vanguard mobile phone app to take a picture of the check, once received, to deposit the money to your IRA.
A friend used this technique and it was handled quickly.

3. As mentioned above, if the current 401k custodian is a large firm like Fidelity or Schwab, you could ask that the 401k money be put into an IRA at the same firm, which usually speeds things up. Then, once the money is invested in the new IRA, buy something that can be transferred in-kind, like an ETF such as VTI or VXUS or BND. Then, once that new IRA is all set up with an ETF, ask to have the IRA/ETF transferred in-kind to your existing IRA at Vanguard to consolidate.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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