Lag time to transfer 401 to TIRA

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1year23
Posts: 43
Joined: Fri Apr 01, 2016 8:31 am

Lag time to transfer 401 to TIRA

Post by 1year23 » Wed Oct 10, 2018 7:06 am

Yesterday I initiated transferring my 401K from Vanguard to Fidelity. I retired a year ago and want to make this a non-taxable event. I received help from a Fidelity representative and this is proceeding smoothly as far as I know. The rep at Fidelity told me that he is overnighting in the papers to Vanguard and I should be able to invest in my new Fidelity account in about 10 days. I should have asked him at the time, but didn't think of it. What happens to the interest I could have been earning on this money for 10 days? Its not a small amount. Is this acceptable? Why does it take so long? Is this the way Fidelity skims a little off the top? Is there anything I can do about this?

livesoft
Posts: 68637
Joined: Thu Mar 01, 2007 8:00 pm

Re: Lag time to transfer 401 to TIRA

Post by livesoft » Wed Oct 10, 2018 7:11 am

10 days is not bad. It could take from 1 day to 4 years. Here is a thread describing some of the people, paperwork, etc:
viewtopic.php?f=2&t=259113

I did a Fidelity to TDAmeritrade rollover in 5 days.

Your money earns nothing while it is a check in the mail.

If you have other accounts, you could have moved the 401(k) to cash and any bonds/cash/fixed income in the other accounts into whatever you had the non-fixed-income of your 401(k) invested in. That is, you could have maintained your desired asset allocation during the transfer. If you had an emergency fund, you could have brought it into play as well.
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