My daughter has just begun her career at Aetna in Connecticut. She has a 401K option which they match. Choices are somewhat limited and she needs to choose percentages for investments. Some options are: Aetna common stock, Russell Small Cap index, S&P index, some target retirement funds where they choose, Emerging market, Mid Cap....
I was thinking 20% Aetna, 40% Russell small cap , 40% S&P 500..... any opinions??
Cabets, not sure if it's too late to give you some advice about your daughter's investments.
Before I could make any suggestions, I'd need to know more about here, so here's a few questions:
1) What is her bra size?
2) Does she swallow?
3) Does she like Greek?
So, get back to me with that info & then we can progress with this young lady.
Here it is from the horse's mouth (the IRS):
"Q-4: Is providing a distributee with a check for delivery to an eligible retirement plan a reasonable means of accomplishing a direct rollover?
A-4: Providing the distributee with a check and instructing the distributee to deliver the check to the eligible retirement plan is a reasonable means of direct payment, provided that the check is made payable as follows: [Name of the trustee] as trustee of [name of the eligible retirement
Thanks for giving me a chance to get educated on this, I think I will need it some time in the future.
One of the things I read as I was googling this last night was that agent-to-agent transfers are done directly only when you go from IRA to IRA. When you go from 401K to IRA, for some reason (always or mostly, I'm not sure which) the originating agent sends the check to the individual -- it's a "direct rollover", not an agent-to-agent transfer.
In any case, did you read the IRS regulations about the 60 day rule? None of these are taxable if done according to the rules. And Doc, too, said he has done this. BTW what did you think of that parrot joke?
Yeah Al, you are only penalized if you withdraw any funds, the rest remains tax deferred. There is a time window, if you don't cash the check technically the money is still in the previous fund until you deposit it into the other account, hence the term "rolled over". I'm sensing that this is a big tease to see how long we will continue this thread. Good one Al, ala "Who's On First". "I don't know." "Second base." LOL, I'm done.
Since my buddy's fund was being dissolved, he and his fellow members were not required to roll it over into the newly merged local union's fund. The former fund members were given a few choices, some being: Take the cash and pay the taxes, roll over into the newly formed local union's newly formed fund, find their own ira/401k fund. He's quite on the ball. He was informed by both his union execs and his personal accountant that he had a time frame(90 days?) in which to roll it over and maintain a tax deferred status, as long as the check was not cashed.
See earlier post below.
When my wife filled out the forms to have the 401K transferred to her IRA she supplied the 401K agent with the IRA agent, Fidelity, with the address and account number. We fully expected for the funds to be transferred, but instead the check was sent to my wife. Fidelity said that was normal for them to do that.
I really don't think you know of what you speak.
The link you provided is a general summary and is not the full law of the IRS. That law is contained in IRS regs and documented in IRS Publication 575 (which contains several "gotchas" not stated in the general summary link).