How to Roll Over a 401k to an IRA - Wells Fargo

How to Roll Over a Qualified Employer Sponsored Retirement Plan (QRP) Such as 401(k), 403(b), or Governmental 457(b) into an IRA

Three Simple Steps to Rolling Over

Once you have decided to roll over your QRP into an Individual Retirement Account (IRA), here's how it's done:

Step 1 – Choose an IRA

  • First, determine whether you need a Traditional or Roth IRA. Your designated Roth account can only roll to a Roth IRA, or another designated Roth account, it cannot roll to a Traditional IRA.
  • Then, decide how you would like to work with Wells Fargo. Select Your Rollover Account

If you need help call us at 1-877-493-4727.

Step 2 — Transfer funds from your old QRP

Contact the plan administrator of the QRP you are rolling (contact information can be found on your last QRP statement), and request a direct rollover distribution payable to Wells Fargo. Make sure to:

  • Ask to roll over the funds directly to Wells Fargo for benefit of (FBO) your name.
  • Reference both your name and the account number (if available) of the new IRA you set up or your existing IRA.

They will either send the funds directly to Wells Fargo, or you will receive a check in the mail made payable to your IRA to deposit into your Wells Fargo IRA.

Step 3 — Invest  your savings

Once you have your savings, it's time to invest  them. Depending on how you chose to work with Wells Fargo in Step 1, you can either:

  • Choose the investments that make the most sense for your unique goals and situation.
  • Contact us for help creating an investment allocation tailored to your needs.

Please keep in mind that rolling over your QRP assets to an IRA is just one option. You generally have four options for your QRP distribution:

  1. Roll assets to an IRA
  2. Leave assets in your former employer’s QRP, if QRP allows
  3. Move assets to your new/existing employer’s QRP, if QRP allows
  4. Take your money out and pay the associated taxes 

Each of these options has advantages and disadvantages and the one that is best depends on your individual circumstances. When considering rolling over your assets from a QRP to an IRA, factors that should be considered and compared between QRPs and IRAs include fees and expenses, services offered, investment options, when you no longer owe the 10% additional tax for early or pre-59 ½ distributions, treatment of employer stock, when required minimum distributions begin and protection of assets from creditors and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with QRPs. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets.

We’re here to help

Call us 1-877-493-4727

Get retirement and rollover guidance

Wells Fargo has answers to your 401(k) rollover questions.

Our retirement tools and calculators can help you get started, understand your choices, and take small, manageable steps toward your retirement goals.

Investment and Insurance Products are:
  • Not Insured by the FDIC or Any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.

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Disclosures

  • Wells Fargo and Company and its Affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.

  • Information published by Wells Fargo Bank, N.A., Wells Fargo Advisors, or one of its affiliates as part of this website is published in the United States and is intended only for persons in the United States.

  • Wells Fargo Bank, N.A. ("the Bank") offers various banking, advisory, fiduciary and custody products and services, including discretionary portfolio management. Wells Fargo affiliates, including Financial Advisors of Wells Fargo Advisors, may be paid an ongoing or one-time referral fee in relation to clients referred to the Bank. In these instances, the Bank is responsible for the day-to-day management of any referred accounts.

  • Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company.

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