How to Roll Over Funds Into Your 401(k) Plan with NestEggs

If you have retirement savings from a previous job—like a 401(k), 403(b), or an IRA—you may be able to consolidate those funds into your current employer’s 401(k) plan. This process is called a rollover contribution.

A rollover is when you move funds from one qualified retirement plan into another. When done correctly, this transfer is not taxable and helps you keep your savings growing tax-deferred.

You can roll funds into your current 401(k) from:

• A previous employer’s 401(k), 403(b), or other qualified plan

• A Traditional IRA (in most cases)

Roth IRAs cannot be rolled into a 401(k), but Roth 401(k) funds from another plan typically can be.

Here are a few benefits:

• Consolidation: Fewer accounts to track and manage

• Simplicity: One source for statements, investment choices, and distributions

• Loan eligibility: Some plans base 401(k) loan limits on your total account balance, which may increase with rollovers

• Continued tax-deferred growth: No taxes or penalties when done properly

Follow these steps to ensure a smooth, penalty-free transfer:

Step 1: Check Plan Rules

• Not all 401(k) plans accept rollover contributions. Confirm with NestEggs that roll-ins are allowed in your plan.

Step 2: Request a Direct Rollover

• Contact your old plan provider or IRA custodian.

• Ask for a direct rollover to your new plan. This avoids tax withholding and penalties.

• The check should be made payable to the new plan (e.g., “Charles Schwab Trust Bank, [Plan Account Number], FBO [Your Name]”).

Step 3: Complete the Paperwork

• Your current plan will likely require a Rollover Contribution Form.

• You may also need to provide a copy of a recent statement from the prior plan showing the source of funds (e.g., pre-tax or Roth).

Step 4: Deposit the Funds

• If the check is made out to the plan but sent to you, contact NestEggs for proper forwarding instructions to the plan's trust account.

• Do this within 60 days to avoid a taxable distribution if it was an indirect rollover.

Once your rollover is processed:

• The funds will appear in your 401(k) account.

• The rollover contribution will be invested according to your current investment elections in your account.

• Keep confirmation of the rollover for your tax records.

• You cannot roll over after-tax contributions unless your plan accepts them.

• Roth 401(k) rollovers will maintain their Roth character, but may have different withdrawal rules.

• Indirect rollovers (where the check is made out to you) are riskier and subject to tax withholding—avoid them if possible.

If you’re unsure how to start a rollover or need help identifying your old accounts, contact NestEggs. We can guide you through the process and confirm what's required.