Rolling over a Transamerica 401(k): Step-by-step guide

A 401(k) rollover involves transferring an existing investment savings account from a former employer plan to a new employer-sponsored retirement plan or to an IRA of your choosing.

There are a variety of investment options available which you can discuss with your plan administrator. It is essential to conduct proper research about which plan is the best option for your 401(k) rollover.

In this resource, we will be looking at Transamerica retirement solutions.

5 Simple Steps to Complete a Transamerica 401(k) Rollover

We’ve laid out a step-by-step guide to help you roll over your old Transamerica 401(k) in five key steps:

1. Confirm a few key details about your 401(k) plan
2. Decide where to move your money
3. Initiate your rollover with Transamerica
4. Get a check in the mail and deposit it into the new account
5. Make sure your funds are being invested properly

Step 1: Confirm a few details about your Transamerica 401(k)

First, get together any information you have on your Transamerica 401(k). It’s okay if you don’t have a ton, but any details like an old account statement or an off-boarding e-mail from your former HR team can help, or visit transamerica.com.

401(k) paperwork can be confusing, so just focus on identifying the following items:

1. Is your account eligible for a rollover? In most cases, it takes about 2 weeks from the time you leave a company for your 401(k) to be eligible for a distribution or rollover. You can confirm that your plan is able to be transferred by contacting Transamerica or your previous employer’s HR department.
2. Do you have a traditional or Roth 401(k)? This will determine which type of IRA you’ll need to open (more on this in step 2). The vast majority of people have a traditional 401(k), and this is almost always the default option in a 401(k) plan you’d have access to at work. Only 12% of 401(k) plans even offer a Roth 401(k), but it’s worth checking.
   • What’s the difference between the two? Just the way your contributions were taxed. With a Traditional 401(k) your contributions came out of your paycheck on a pre-tax basis, while with a Roth 401(k), you made after-tax contributions. Consult with a professional tax advisor to understand more.
3. Is your mailing address up to date? Make sure your mailing address (and if applicable, your PO Box) is updated on your Transamerica 401(k) account. They’ll use this address to send you a paper check as part of the rollover process. If you need to update your address, make sure to do so during your phone call authorization (more in step 4)

Step 2: Choose an IRA to move your money into

In order to move the money out of your 401(k) account, you’ll first need to have an account opened for that money to move into.

You have two main options:

1. An IRA — an IRA is an “Individual Retirement Account”. As the name suggests, it’s a retirement savings account you open up on your own and it isn’t connected to an employer.
2. A new 401(k) — you might have an active 401(k) account with a current employer. If so, you may be able to transfer your old 401(k) savings into that current account. This isn’t always possible though, and you’ll need to check with your current 401(k) provider and HR person.

We’ve written a full guide on the five key differences between 401(k)s and IRAs if you’re trying to understand all of the differences.

Ultimately, most people who roll over an old 401(k) do so into an IRA for a few key reasons:

• Not tied to an employer — IRAs are generally easier to keep track of since they’re opened by you at an institution of your choice like Fidelity, Vanguard, or Betterment.
• A wider range of investment options — your 401(k) account generally has a limited set of investment options. With an IRA, you can invest your money in a wide range of retirement assets such as stocks, mutual funds, ETFs and even private assets like angel investments and cryptocurrency. The Financial Industry Regulatory Authority (FINRA) reminds investors that before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock
• Quicker process — according to the GAO, rollovers into 401(k)s tend to be more time-consuming and administratively challenging than rollovers into IRAs.

Think of your IRA as helping you do two key tasks:

1. Receive the money you’ve saved in your 401(k) at previous jobs so you can consolidate your savings and keep track of them.
2. Grow that money by allocating it into investments that will increase over time.

The good news? Opening an IRA can almost always be done online and should take you less than 10 minutes if you don’t already have one.

Allocating your IRA savings to investments will help it grow over time.

Step 3: Initiate your 401(k) rollover with Transamerica

You’re making great progress. You’ve confirmed key details about your 401(k) plan account and you have an IRA to transfer your money into. The next step is to initiate your rollover with Transamerica. Depending on your plan, Transamerica has a few methods for requesting a rollover::

1. online through your Transamerica account
2. by filling out Transamerica’s distribution request form
3. by calling Transamerica

Authorize the 401(k) rollover online

Your plan may allow you to complete the rollover initiation process online. This can be a fast and convenient way to get your rollover started without having to mail any paperwork or make phone calls. You’ll want to confirm that your mailing and contact information on your account is correct so that your online submission is accurate. If you aren’t sure, you always have the option of initiating over the phone.

To start the online rollover initiation process, you’ll need to login to your Transamerica account. Look for an option like “move assets”, “roll over money”, or “start a distribution”. These options can sometimes be hidden under an “actions” or “withdrawal” menu or similar.

Ultimately, the option you want to select should explicitly say “rollover” and you’ll often need to specify that you want to move your funds “out of the plan” or “to another institution”.

Two other important tips to keep in mind while going through the online process:

1. Opt for a direct rollover into an IRA at another institution — this is easier than an indirect rollover.
2. You may be asked how much of your balance you want to roll over. It’s easier to do a full rollover so you don’t leave any money behind.

Authorize your Transamerica 401(k) rollover using a paper form

Rolling over via enrollment form allows you to avoid a human conversation but can sometimes get rejected which will prolong the process. If you’ve confirmed that your mailing address and contact information on your account is correct and that your plan is eligible for a rollover using their form, initiating your rollover via form is worth considering. If you aren’t sure, you may want to initiate your rollover over the phone to avoid any issues during processing.

The rollover distribution form can usually be found online through your Transamerica account. Try logging in and looking in the menu or searching for “forms”. If you can’t find it online, you may have to call Transamerica directly to request it.

Once you find the form, you’ll need to fill out, sign, and send it back to Transamerica by mail or fax. In some cases, Transamerica may require the form to be notarized prior to sending. The mailing address and fax number can be found at the end of the form.

Authorize transferring your 401(k) to an IRA via phone

In some cases, you may need to request the rollover transfer over the phone by speaking directly with a Transamerica representative. Contacting Transamerica directly over the phone also allows you to correct any issues on your account, update your mailing address, and initiate the rollover all in one go. Transamerica’s phone number should be visible on an old account statement, website, or on the distribution form.

In order for your call to go smoothly, follow these tips:

1. Set aside 30 minutes and a quiet space in which to make the call. Most of the time the call itself will take around 10 minutes, but there can often be a waiting time before you’re connected to an operator.
2. If you have an old 401(k) statement, keep it handy. No worries if not — you’ll be asked for your social security number and some other personal details to verify your identity.
3. Before you do the call, log into your new IRA account. Note down the following information:
   • Your IRA account number
   • Any other check-related instructions. These details are usually found on the IRA provider’s website in a “Funding” or “Rollover instructions” section and include things like the name of the institution to whom the check is made out (usually the full legal name of the IRA provider you’ve chosen).

Then place the call. Be prepared for a little hold time but in our experience, the entire call should take no longer than 30 minutes.

Don’t forget to confirm your mailing address during the call. Transamerica will mail your rollover check to the address they have on file. If you need to update your address with them, just let the Transamerica rep know during the call and provide your current address.

Step 4: Make sure your old 401(k) funds are deposited into your new account

In most cases, Transamerica will send your rollover funds directly to your new account provider. If that’s the case, simply keep an eye out for the money to hit your receiving account in 10-15 business days after you submit your rollover request.

If they send the funds directly to you, you’ll get a paper check in the mail at the mailing address associated with your Transamerica account. Once you get the check, it’s then up to you to deposit that check with your new account provider.

There are a few ways you can deposit your check depending on the provider:

• Mobile deposit — the easiest option is to check your provider’s mobile app to see if they have a mobile deposit option. Not all providers provide this option but it’s worth checking. Mobile deposits are the quickest option and typically take 3-5 business days to show up in your account.
• Deposit in person at a local branch — if your provider has a physical branch nearby, you can also deposit the check in person. Checks deposited in person typically take 3-5 business days to show up in your account.
• Send the check by mail — you can also send the check by mail to the provider using the address you previously looked up. Funds that are mailed can take up to 15 business days to show up in your account.

Step 5: Make sure your IRA is being invested appropriately

Remember there are two goals of rolling over an old Transamerica 401(k) into an IRA — the first is to consolidate your 401(k) assets, and the second is to grow those assets by allocating them into investments that will increase in value over time.

Your very last step in executing a rollover is to make sure that the second goal is being met and that the funds in your IRA are being appropriately invested. If you chose an automated IRA then this should happen automatically.

That’s because as soon as your funds arrive they’ll be allocated into a portfolio that was created for you during the sign-up process for your new IRA account. You should still log in and check to make sure that’s the case, but usually, there’s nothing more for you to do.

If you choose a self-directed account then you’ll have to invest the money yourself. Often the simplest option is to purchase a target-date retirement fund — this is an investment vehicle that puts your money into a combination of higher-risk, higher-return stocks and lower-risk, lower-return bonds.

The exact mix changes as you age so that you have more stocks when you’re younger and less as you get older: because stocks generate higher returns but are more volatile we should own more of them early on when we can withstand their fluctuations in order to achieve their higher long-term returns.

Keep in mind that you can consult with a financial advisor for further guidance should you need it.

What are the Transamerica 401(k) Rollover Fees?

Its all-in cost was 2.60% of plan assets each year, with each participant paying $1,104.48 in annual administration fees.

Average Transamerica 401(k) Fees:

• Avg. Plan Assets: $461,509.95
• Avg. Plan Participants: 9
• Per-Capita Admin Fees: $1,104.48
• All-In Fees: 2.60%
• The Pros and Cons of Rolling Over Your 401(k) Into an IRA

Benefits:

• Any gains from investments within your account continue to be tax-deferred.
• You can evade early withdrawal penalties and taxes that accompany liquidating your account.
• Consolidating your retirement assets can simplify asset allocation and rebalancing.
• It allows you to gain autonomy from your previous employer.

Drawbacks:

• Unlike with a 401(k), you cannot take a loan against an IRA.
• Your assets might not be entirely shielded from claims by certain creditors.
• You may lose access to specific features and benefits offered by employer-sponsored plans that you value.
• Assess the costs you incur, including charges associated with account transfer, to evaluate if consolidating your accounts or moving to an IRA could lower your expenses.

It’s worth noting that employer-sponsored retirement plans might include features you find advantageous, such as access to institutional funds, investments selected by a fiduciary, and additional ERISA protections not available to other investors.

When considering a transfer from a retirement plan, make sure to evaluate if the transfer would alter any features or benefits that are of importance to you.

Making your Transamerica 401(k) rollover work for you

401(k) rollovers are a great way for you to tax-efficiently transfer the savings in old 401(k) accounts you have. If you roll over into an IRA, you may also be able to invest in a wider range of assets.

The process can seem a little daunting, but there are just five key steps to follow. Most people who complete a rollover are glad they did. The assets in accounts like your IRA will probably end up being your biggest source of financial support when you retire. Investing a little time to get those assets set up and working for you in the right way can really pay off.