03 Jun How can I move my 401(k) plans without messing it up?

Q. I have two 401(k) plans that I left with my old employers. I’m ready to move the accounts, maybe at Schwab or Vanguard. How can I make sure I don’t mess it up, and can I put the 401(k)s both into the same IRA?
— Moving on

A. We’re glad you asked.

Rolling over a 401(k) plan is a relatively easy thing to do.

Given that you do not appear to need any of the funds at the present time, you can instruct the human resources department at your former employer to transfer the balances in the two 401(k) plans directly to the IRA you presumably are opening to accept the distributions, said Neil Becourtney, a certified public accountant and tax director with Smolin, Lupin & Co. in Red Bank.

By not receiving any distribution directly, the transfer is automatically treated as a nontaxable rollover, he said. If you took the money into your own hands, you would have 60 days to roll it over to an IRA, he said.

Next January you will receive a Form 1099-R reporting the gross distribution with code “G,” signifying direct rollover to an IRA, Becourtney said.

The gross distribution will be reportable on your 2025 Form 1040 with zero portion taxable, he said.

Just note that if you have a combination of Roth and traditional 401(k)s, you’ll want to roll them into the same kind of IRA.

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This story was originally published in June 2025.

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