401K Rollover To CD IRA

Keri | Jun 18, 2016 | 3 posts since 2016

I am quitting work (!) and have a $150k 401k. I would like to roll it over to an IRA 5 yr CD. Can I do that? Or do only some banks permit this? I have examined cd rates at Vanguard, but there are better elsewhere such as Melrose Credit Union.

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Answers

bwk1954 | Jun 18, 2016 | 25 posts since 2011

If they will take a 401K rollover, you may want to consider Andrews FCU. They have an 84-month CD special of 3%, early withdrawal penalty of 180 days, and easy membership. Within the last year I opened an IRA account with them, rolled over one IRA CD, and transferred one to them with no problems.

Keri | Jun 18, 2016 | 3 posts since 2016

Much appreciated. I will examine it.

arthurtony | Jun 28, 2016 | 24 posts since 2016

I have also successfully completed this transaction recently. It is a little bit of a lengthy process, as it has to completed via snail mail. The forms are also a somewhat of a nightmare, but the ira dept. will assist. Worth it for the 3% right now!

Ally6770 | Jun 18, 2016 | 4,292 posts since 2010

Not sure of your age or when you will be required to take or want to take an withdrawal but most places with not charge you a penalty for a RMD or charge a penalty if you are over 59 1/2 if you leave the minimum in the CD if you are offered a higher % on another CD or do a conversion to a Roth.

Keri | Jun 18, 2016 | 3 posts since 2016

Thank you. I am 62 and can let this one grow, will likely reinvest the RMDs.

Ratesaver | Aug 16, 2016 | 187 posts since 2013

I also did the Andrews 3% rollover from a 401k ... Everything went ok but their were some not sure moments as my check went to me with their name and my name so I signed it and sent it to them and that should not have happened as the paper work was filled out right... I was not their fault thought it was my former administrator who screw it up...

Ally6770 | Aug 16, 2016 | 4,292 posts since 2010

If you take your checks with you make sure the checks are made out to the institution for the the benefit of you. That is what I did when I retired in 2008 and I had a pension check, the 401K check and they also had part of my Roth and traditional IRA's. I had no problems at all. Call IRS with any questions. They have always been so helpful to me. Write down the date, time and badge number when they transfer you to an IRA specialist or an IRA lawyer at IRs. At that time this is what they told me to do. The highest rate was at a local bank and I could walk in and make sure all of the paperwork was done correctly and ALWAYS get a copy of the signature cards, beneficiaries and contingent beneficiaries.

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