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How to start a 401(k) rollover
How to start a 401(k) rollover

Get Your Dollars Out of The Zombie System With Choice

Updated over 7 months ago

Have you changed jobs and left your 401(k) behind? We're here to help you rescue those funds from the legacy system!

Step 1: Submit a Choice deposit form.

Step 2: Initiate the rollover with your 401(k) provider by contacting your plan administrator directly.

⚠️ Typically, you're only able to complete a 401(k) rollover after you change jobs.

However, some 401(k) plans offer in-service rollovers that allow you to move assets from your current employer’s 401(k) into an IRA without a job change. If you're interested, please check with your 401(k) administrator if your plan allows this.


I want to initiate the rollover myself

If you already know where your 401(k) is and how to initiate a rollover, you can reach out to your plan administrator to initiate.

Instructions

  1. Initiate the rollover with your 401(k) plan administrator

    • For direct rollovers (most common), request that the rollover check is made payable to Digital Trust, FBO [Your Name], [Your Choice account number] (e.g. Digital Trust, FBO Satoshi Nakamoto, CH90000001)

    • If your 401(k) plan administrator allows your rollover to be sent via wire or ACH, you can find those delivery instructions here - please make sure to note this in Section 1 when you complete the Deposit Instructions form.

  2. Complete the Deposit Instructions form so we know to expect your incoming rollover and how it should be applied to your account

  3. When you receive the rollover check, mail it to Choice using the information below:

For overnight mail (FedEx or UPS)

For standard mail (US Postal Service)

Digital Trust

1105 State Route 121 N.

Suite B

Murray, KY 42071

Digital Trust

P.O. Box 870

Murray, KY 42071


Indirect (60-day) rollovers

Indirect rollovers are when you take personal possession of your qualified retirement savings via a distribution from your 401(k) or IRA, and then re-deposit them into your Choice IRA within 60 days. IRS rules limit you to completing one indirect rollover in any 12-month period, and these funds must be deposited into a like account. For example:

  • Traditional 401(k) ➞ Traditional IRA

  • Roth 401(k) ➞ Roth IRA

⚠️ Word of caution

If the funds you received remain outside of your Choice IRA or another qualified account for more than 60 days, then the withdrawal may be considered an early distribution and subject to early distribution tax penalties.

Instructions

  1. Request a distribution with no withholding from your 401(k) plan administrator

    • If taxes are withheld from your distribution, you will need to use other funds to cover the full rollover amount of the distribution to avoid early distribution penalties

  2. Deposit that money into your Choice IRA within 60 days to avoid tax penalties

  3. When you complete the Deposit Instructions form, indicate the delivery method for your funds (ACH, check or wire transfer) in Section 1 and select 60-day (indirect) rollover in Section 2 to ensure the funds are properly applied to your account

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