Frequently Asked Questions

Financial Questions

Which financial institutions are associated with RolloverSystems?
RolloverSystems works with some of the most widely recognized and respected financial institutions in the country. The member financial institutions of the RolloverSystems Network offer a broad range of investment choices for your retirement savings. Please see RolloverSystems Partners for more information concerning the financial institutions that are part of our member network.

What choices do I have with my company retirement plan?
For information about your options please read Choices When Leaving Your Job.

How will my funds initially be invested in my new account?
The money in your company retirement plan will be reinvested in a money market fund with the financial institution you have selected. Once your account has been established and your assets have been transferred to your new Rollover IRA, you should contact your financial institution representative to obtain more advice and guidance regarding diversification of your IRA assets.

What is a money market account?
A money market account shares some of the characteristics of a money market fund. A money market fund is a mutual fund that invests in very short-term, high-liquidity investments. A money market account is similar to a savings account, though usually offers better interest rates, and are insured by the U.S. government.

When will my selected financial institution contact me?
You will be contacted by mail or phone after your selected financial institution has established your account. Some financial institutions accept a digital signature, and will begin processing your account shortly after you have completed the online form. Other financial institutions require a signed Rollover IRA application. Financial institutions vary in the length of time necessary to process your account. If you have not received contact within 3 weeks, please call RolloverSystems Customer Care at (888) 600-7655.

How is the money transferred from my former employer to my selected financial institution?
The best way to move retirement money from your previous employer to your selected financial institution is to have the check from your former employer's retirement plan made payable to the financial institution for your benefit, which is typically abbreviated as FBO, For example, your check should say “ACME Financial Institution FBO John Doe.”

Should your check be made payable directly to you, you will have additional withholdings along with tax and penalty liabilities if you do not invest your distribution check within 60 days of the distribution. So, if you have already received a distribution check from your former plan custodian, be sure to complete the RolloverSystems process as soon as possible and send in your Rollover IRA application.

IF YOU RECEIVED A DISTRIBUTION CHECK THAT IS DATED MORE THAN 40 DAYS AGO FROM YOUR FORMER RETIREMENT PLAN CUSTODIAN, WE STRONGLY RECOMMEND AGAINST USING OUR SERVICE. INSTEAD, YOU SHOULD GO DIRECTLY TO A FINANCIAL INSTITUTION, OPEN AN ACCOUNT AS SOON AS POSSIBLE AND DEPOSIT YOUR CHECK IN THE NEW ACCOUNT.

What if I already have a distribution check?
It is important for you to reinvest your distribution check in a tax-deferred retirement plan within 60 days of the distribution. Here is what has already occurred and what you should expect to occur if you already have a distribution check:

Your employer has already withheld 20% of the amount for the IRS. You will only get this money back once you file your tax return and only if you actually moved the money to a tax-deferred account within 60 days. For example, if you have $25,000 in your company retirement plan, your employer will withhold $5,000 of your money for the IRS. If the deposit is not made in 60 days, then the IRS will charge you a 10% penalty on the full amount, which is $2,500 in the above example. In addition, you will have to pay federal, state and local taxes on the full amount.

If you decide to rollover your account within the 60 days, you are responsible for depositing the 20% that your employer withheld ($5,000 in the above example). If you don't pay the 20%, it will be treated as an early distribution meaning that 20% will be penalized and taxed.

IF YOU RECEIVED A DISTRIBUTION CHECK THAT IS DATED MORE THAN 40 DAYS AGO FROM YOUR FORMER RETIREMENT PLAN CUSTODIAN, WE STRONGLY RECOMMEND AGAINST USING OUR SERVICE. INSTEAD, YOU SHOULD GO DIRECTLY TO A FINANCIAL INSTITUTION, OPEN AN ACCOUNT AS SOON AS POSSIBLE AND DEPOSIT YOUR CHECK IN THE NEW ACCOUNT.

About how long will the entire rollover process take?
If you are accessing RolloverSystems through an employer-sponsored desktop application, the process will be quicker. This is because RolloverSystems can capture all the required information from your employer which will streamline the process significantly. You should be able to complete all of the necessary paperwork for your IRA in less than 20-25 minutes. After your paperwork is submitted, the time it takes to fund your new account varies depending upon when your retirement plan custodian releases your assets.

If you are accessing RolloverSystems directly through the RolloverSystems website, the process can take longer since your employer may require authorization before your assets can be dispersed to a financial institution.

Does RolloverSystems provide all the forms required to roll over my company retirement plan?
It depends on how you are accessing the RolloverSystems process. If you are accessing the process through an employer-sponsored desktop application, then all the forms will be populated for you - all you need to do is sign and mail all the forms to RolloverSystems.

If you are accessing the RolloverSystems process directly from our website, you may have an additional step to fill out what is called a distribution form. A distribution form is a form that your former employer requires which indicates to the financial institution that you have given your former employer permission to move your assets to your selected financial institution. In this case you will work with your former employer and financial institution to obtain this form and fill it out properly.

What if I have plans from multiple employers?
You have two choices:

1. You can consolidate your plans into one Rollover IRA that is maintained by a single financial institution. To accomplish this, just indicate the number of retirement plans you wish to consolidate (up to five) at the start of the process and go through the RolloverSystems process once.
2. You can separate your company retirement plans into different Rollover IRA accounts with different financial institutions. To accomplish this, you would go through the RolloverSystems process for each of the plans you want to roll over.

Once I mail my application to RolloverSystems, what is the relationship between my new Rollover IRA account, my selected financial institution and RolloverSystems?
Once we send your application to your chosen financial institution, your financial institution will be your only point of contact.