How to roll over assets to a Schwab account

How to roll over assets to a Schwab account

A rollover is a potentially tax-free distribution of assets between eligible retirement accounts, custodial accounts, 529 College Savings Plans, and education savings accounts (ESAs) Tooltip . The three types of rollovers between retirement plans are direct, 60-day and indirect. To determine if the rollover assets are eligible, see the rollover accounts table. For distributions, see How to request a retirement distribution. For additional guidance Tooltip  on retirement accounts, consult a tax or legal advisor.

Depending on the scenario, you can roll over assets to a Schwab account using paper forms or the Move Money tool. See the applicable scenario for rollover procedures.

To roll over assets to a Schwab account you will need the following:

All rollovers
  • A Schwab account to receive the assets
  • Your firm name and master account number
  • Information for the disbursing account, including account number, distribution reason, distribution method, and tax withholding elections provided by the account holder
  • For first-time distributions, a distribution form designating the client’s tax withholding election preferences
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
In addition to the information above, the following rollover-specific information may be required:
Roll over Schwab assets to existing Schwab accountA completed Check and Journal Request Form
Roll over non-Schwab 529 College Saving Plan or ESA to Schwab 529 plan
  • For a Schwab 529 College Savings Plan: a completed 529 College Savings Plan Incoming Rollover Form
  • The account holder's full name, name of the joint account owner, identification number Tooltip  , telephone number, name of designated beneficiary, designated beneficiary Social Security number, current account statement with name of current 529 plan or ESA custodian that is being rolled over, and account number, address, and phone number
Roll over Schwab qualified retirement plan (QRP) or individual 401(k) to IRA
  • An IRA Rollover: Stock Distribution Statement Tooltip   in certain cases of stock deposits
  • If rolling over a QRP, a completed QRP/Keogh Distribution Request Form
  • If rolling over an individual 401(k), a completed Individual 401k Distribution Request Form

This process may be used to roll over QRP or individual 401(k) assets to a Schwab IRA using paper forms.

  1. Select the applicable form below to open the Forms & Applications page on Schwab Advisor Center®. Click Select, and then select Open PDF:
  2. Complete all necessary fields.
  3. Print the form and obtain signatures from all account holders and others as indicated on the form. Send the signed form to your Schwab service team via a Schwab Advisor Center service request.

Rollovers between Schwab accounts are processed as internal transfers (journals). While most internal transfers can be requested through the Move Money tool (see How to submit a journal request online), some retirement accounts Tooltip are not eligible for online requests. This process may be used to request an internal transfer (journal) with paper forms.

  1. Select the Check and Journal Request Form link to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select Open PDF.
  2. Complete all necessary fields.
  3. Print the form and obtain signatures from all account holders. Send the signed form to your Schwab service team via a Schwab Advisor Center service request.

This process may be used to roll over assets from outside of Schwab to an existing Schwab retirement account as a transfer.

  1. Place a conference call to the plan administrator to obtain direct rollover instructions. The client must be on the line to authorize the distribution of assets.
  2. If the plan administrator does not allow instructions from the client over the phone, the client should request that the paperwork be sent to them.
  3. Once completed, if it requires Schwab to sign or attach a letter of acceptance, forward the paperwork to your Schwab service team for processing. For more information, see How to transfer assets to a Schwab account.

This process may be used to roll over non-Schwab assets from a 529 College Savings Plans or ESA Tooltip to an existing Schwab 529 College Savings Plan, using paper forms. The designated beneficiary must be an eligible family member. If an ESA is transferred to a Schwab 529 College Savings Plan, the beneficiary must also be the account owner.

  1. Select the applicable form below to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select Open PDF:
  2. Complete all necessary fields.
  3. Print the form and obtain signatures from all account holders. Send the signed form to your Schwab service team via a Schwab Advisor Center service request.

Once you submit the required documentation:

  • The request is reviewed and processed by Schwab.
  • Schwab may contact you for additional documentation and/or information after completing an initial review.
  • If you have questions about rolling over assets into a Schwab account, call your Schwab service team.

Go to the Forms library on Schwab Advisor Center and select the forms below.

Form: Check and Journal Request Form
Form: Individual 401k Distribution Request Form
Form: Learning Quest 529 Plan Incoming Rollover Form
Form: QRP/ Keogh Distribution Request Form
Form: 529 College Savings Plan Incoming Rollover Form

Can my client roll over funds from a traditional or Roth IRA into an education savings account Tooltip ?
No. Rollovers into education savings accounts are not allowed.

What retirement accounts can I combine without my client's signature if I have withdrawal power financial advisor (WPFA) or Withdrawal power financial advisor-custody (WPFA-C) on both accounts?
If you have Withdrawal power financial advisor (WPFA) or Withdrawal power financial advisor-custody (WPFA–C), you can combine the following accounts on behalf of your clients without a letter of authorization:

  • Contributory IRAs, rollover IRAs, SEP-IRAs, and SAR-SEP IRAs
  • Roth contributory IRAs and Roth conversion IRAs

If you wish to combine other types of retirement accounts, contact your service team.

How many IRA rollovers are allowed per year?
Clients are limited to one 60-day rollover across all IRAs per 12-month period, effective in 2015. Rollovers are permitted only once per 12 consecutive months, regardless of the number of IRAs owned. The limit applies to all individual's IRAs (including Traditional, Roth, SEP, SIMPLE etc.), effectively treating them as one IRA for purposes of the rollover limit.

Only rollovers coming from an IRA (including SEP and SIMPLE) are impacted. The 12-month rule does not apply to direct rollovers coming from retirement plans, such as QRP, individual 401(k) or 403(b)(7).

Custodians (including Schwab) are not required to track rollovers, nor are they required to enforce the 60-day rule or this 12-month rule. Schwab records/reports a rollover as the client designates; the onus is on the taxpayer to comply with all rules.

How much time is available to complete the rollover?
The assets must be deposited within 60 days of receipt of the distribution to avoid any tax consequences. Rollovers must be done with in-kind assets.

For a 60-day rollover, when does day one of the rollover period begin?
Day one of the 60-day rollover period begins the day after the distribution is received by the client. For holidays and other 60-day rollover rules and exceptions, see the three types of rollovers (direct, 60-day, and indirect).

Can I convert an account from one retirement account registration to another after an account has already been opened?
No. You cannot convert the retirement account type after the account number is issued. The existing account must be closed, and a new account application submitted under the correct registration.

Can you roll over to a new 403(b)(7) account at Schwab?
Schwab no longer accepts new 403(b)(7) accounts or transfers into existing accounts but will continue to maintain and service existing accounts. If your client terminated service with their employer due to job change or retirement, they may also consider a direct rollover from their 403(b)(7) to a rollover IRA.

Are there any age limitations or minimum asset requirements on performing a rollover?
There are no age limitations or minimum asset requirements on performing a rollover.

How to deposit checks
How to open a 529 College Savings Plan
How to open an individual 401(k) plan
How to open an inherited IRA
How to open an IRA for international clients/residents
How to open a qualified retirement plan (QRP)
How to open a Roth IRA
How to open a SEP-IRA
How to open a SIMPLE IRA
How to open a traditional IRA
How to request a retirement distribution
How to submit a journal request online
How to transfer assets to a Schwab account
Introduction to householding
Introduction to the Move Money tool