How to Send a Participant Rollover to a 401(k) Plan at AET
This article is for plan administrators, plan participants, and prior custodians sending rollover funds into an employer 401(k) plan whose cash is held at American Estate & Trust (AET).
Summary
Rollover funds for a plan participant go into the plan's account at AET, not an individual account. To avoid delays, make the check payable to the plan with AET as custodian, put the participant's name and the plan's AET account number in the memo, and send pre-tax and Roth money as separate checks. Include the prior custodian's distribution statement (direct rollover) or a rollover certification and bank statement (indirect rollover) with the funds.
Why These Details Matter
AET holds each plan's cash in two accounts: one for pre-tax (Traditional) funds and one for Roth funds. Your plan administrator keeps track of each participant's balance; AET does not. The details on the check and the documents sent with it are how AET knows which account the money belongs in and that the amount is correct. Funds that arrive without them are held until the missing information is provided.
How to Make the Check Payable
Make the check payable to the plan, with AET as custodian:
American Estate & Trust, Inc., Custodian FBO [Plan Name]
Do not make the check payable to the participant.
What to Write in the Memo
Include all three of the following in the check memo:
- The participant's full name
- The plan's AET account number for this money (Traditional or Roth)
- The word "Rollover"
Example memo: Jane Doe / T100001234 / Rollover
Your plan administrator can give you the plan's AET account numbers.
Send Pre-Tax and Roth Funds Separately
Pre-tax and Roth money go into different AET accounts, so send them as separate checks:
| Type of funds | Send to |
|---|---|
| Pre-tax (deferrals, employer match, profit sharing, Safe Harbor) | The plan's Traditional 401(k) account number |
| Roth | The plan's Roth 401(k) account number |
If the prior custodian can only issue one check, include a statement from them showing the pre-tax and Roth amounts.
Documents to Include
Direct rollover (the prior custodian sends the funds straight to AET):
- A transfer form or distribution statement from the prior custodian showing the rollover amount, the pre-tax and Roth split, and any fees withheld
Indirect rollover (the participant received the funds and is sending them on within 60 days):
- A rollover certification
- A bank statement showing the date the participant received the distribution
The amount on your documents, minus any fees shown on them, should match the amount AET receives.
Where to Send the Funds
By check: Mail to American Estate & Trust, 6900 Westcliff Dr. Ste. 603, Las Vegas, NV 89145.
By wire or ACH: Use the bank details in AET Wire, ACH, and Check Payment Info, with the plan name where the instructions ask for the client name. Put the same memo details in the wire or ACH reference field, and send pre-tax and Roth funds as separate wires.
Important Information
- Missing or mismatched details delay posting. If the memo, the pre-tax and Roth split, or the documents are missing, or the amounts don't match, AET holds the funds until the plan administrator or participant provides what is needed.
- Indirect rollovers may have tax withheld. Employer plans typically withhold 20% when they pay the participant directly. See What is the difference between a direct rollover and an indirect rollover? and talk with a tax professional about how withholding affects your rollover.
- Your plan's rules apply. Whether a plan accepts rollovers, and from which sources, is set by the plan document. Check with your plan administrator before sending funds.
- AET holds plan cash only. For more on AET's role with 401(k) plans, see How AET Handles 401(k) Plan Accounts.