What do I ask my old employer for when rolling a 401(k) into a Schwab IRA?

By Kaz · Published 28 September 2026 · How this site checks figures

Summary

Ask them to deposit the money directly into your Schwab IRA, and if they pay by check, to make it out to "Charles Schwab & Co., Inc., FBO (Your Name)" with your Schwab IRA account number on it. Schwab says the account number helps "avoid potential hold time." Before that, you'll usually have to fill out the former employer's own distribution forms.

The request, piece by piece

Schwab's three steps are open a Schwab IRA, fund it with the rollover, then invest. Step two is where the old employer comes in, and Schwab breaks it into completing the employer's forms, deciding how you want the assets distributed, and asking for a direct deposit into the Schwab IRA.

For a direct rollover, Schwab's learning article says you give the former employer "wire instructions from the custodian of your new rollover IRA account and/or a physical mailing address." Some plan administrators offer electronic transfers. Smaller ones, the article says, "may still need to mail a paper check."

If the old plan holds both pretax and Roth contributions, you may need two new IRAs, a traditional one and a Roth. Schwab's suggestion is to confirm your source of funds with the plan administrator or a tax advisor before you open anything.

Having Schwab make the call

Schwab offers Rollover Consultants at 866-855-5635 who "will work with your former plan administrator to make sure your retirement savings are rolled over properly," at no cost. Schwab lists that service under step two, after the Schwab IRA is opened.

Fees and timing

Schwab IRAs have no account opening or maintenance fees regardless of balance or trading activity, and the minimum deposit is $0. Schwab notes that "Other account fees, fund expenses, and brokerage commissions may apply." A rollover "typically takes a few weeks," depending on the old plan provider and the type of account. If a check does come to you, the 60-day and 20% withholding rules apply, which our page on the 60-day rule and 20% withholding works through.

Sources

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