T to T transfer of 401k to IRA by EFT not allowed ..why
My 401K does not allow T to T transfer of 401k funds to IRA by EFT (Electronic Funds Transfer).. Does anyone have any idea why??**
** I asked the 401K reprs who answer the phone and they do not know why but they do know that the 401K plan does not allow transfers to IRA by EFT….they just do not know why… thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2015-03-17 15:52
Not sure why, but most 401k direct rollovers are done by mailing the check to you, and then you forward it to the IRA custodian. This is still considered a direct rollover, but obviously it takes longer with two different mailing times.
Permalink Submitted by Jose Morales on Tue, 2015-03-17 16:25
I personally have never received a direct rollover from an 401K by EFT, they only come by check.