How To Write A Rollover Check. To avoid tax withholding you ll want to choose what is called a direct ira rollover where the check is made payable to your new financial institution as the new trustee or custodian. Step 3 deposit money into your vanguard account the other firm should.
The check should be made payable to fidelity management trust company or fmtc fbo your name. Direct rollover assets are made payable to the qualified plan or ira custodian or trustee and not to the individual. Be sure to include your ira account number on the check.
Generally retirement account custodians make rollover checks payable to you in which case you can cash the check if you decide not to re invest it in a different retirement account.
Line 15b of form 1040 asks for the taxable amount that is the amount of the ira distribution that you owe taxes on. It comes in a nondescript it. If lori puts the check in a drawer and forgets about it for three months she can still forward that check to her ira custodian. Wait for your 401 k rollover check your rollover check will be mailed to your home.