IRA and 401(k) rollover paperwork: a complete guide.

Types of rollovers and their paperwork implications

Direct rollover (trustee-to-trustee transfer)

In a direct rollover, the funds move directly from the delivering plan or IRA custodian to the receiving custodian — the client never touches the money. This is the most common and tax-efficient method.

• Forms required: Typically both a distribution form from the delivering custodian AND a receiving form from the accepting custodian.
• Client signature typically required on both sets of forms.
• 60-day rule: Does not apply — no check is issued to the client.
• Withholding: Not required for direct rollovers.

Indirect rollover (60-day rollover)

In an indirect rollover, the delivering custodian distributes the funds to the client, who then has 60 days to deposit the entire amount (including any withheld taxes) into the receiving IRA. If the deadline is missed or the full amount is not deposited, the undistributed amount is treated as a taxable distribution and may be subject to the 10% early withdrawal penalty.

• Mandatory 20% withholding on 401(k) distributions (client must make up the difference from other funds).
• One-per-year limit on IRA-to-IRA indirect rollovers (per the IRS one-rollover-per-year rule).
• No limit on direct rollovers (trustee-to-trustee transfers).

In-service withdrawals and plan-to-IRA rollovers

Some 401(k) plans allow in-service withdrawals — rollovers to an IRA while still employed. These typically require employer plan documentation verifying eligibility in addition to the standard rollover forms.

What information the custodian forms require

While each custodian's forms differ, most rollover paperwork collects the following information from the client:

• Full legal name and Social Security Number
• Date of birth
• Current address
• Delivering account number and institution name
• Account type at delivering institution (Traditional IRA, Roth IRA, 401(k), 403(b), etc.)
• Receiving account number and institution name
• Transfer type: full or partial; dollar amount or percentage if partial
• Roth conversion election (if applicable)
• Client signature

Common errors that delay rollovers

• Missing or incorrect account numbers — A single transposed digit can delay a transfer by weeks.
• Name mismatch between delivering and receiving accounts — Legal name must match exactly.
• Wrong account type selected — Checking Roth when the account is Traditional triggers a correction.
• Unsigned or incorrectly dated forms — Most custodians reject unsigned or backdated transfer forms.
• Medallion signature guarantees — Some custodian forms require a Medallion signature guarantee, which must be obtained separately from a bank or brokerage.

How to streamline rollover paperwork collection

• Use a structured intake form rather than collecting information over the phone — clients need time to look up their account numbers, and phone collection is error-prone.
• Collect delivering and receiving account information in a single session so all custodian forms can be populated at once.
• Send the completed, pre-filled forms to the client for review before submission to the custodians.
• Track form submission status and follow up systematically — rollovers stall when forms sit at the custodian.

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