SVIC Facebook Q&A Discussion:
Beagle application for 401k consolidation
Question for the group:
*This question was asked to the community last January 5, 2023:
Does anyone know about the Beagle application for 401k consolidation? I’m pretty sure I have some old 401k’s with old employers that I’d rather not communicate with, even for money. If nobody has used it, can anyone suggest a possible service or strategy?
Community Answers:
Answer #1: Between you and your 401k administrator
“I think 401k is between you and your 401k administrator, not your employer AKA 401k sponsor. Especially former employees.
Btw my recommendation is to roll over 401k to Roth if possible, assuming the value is low due to the stock market.” —SVIC Member
Answer #2: Having both rather than one or the other
“One consideration is that a 401k is generally protected from garnishment or seizure from commercial creditors. IRAs are not. I personally believe in having both rather than one or the other.” —SVIC Member
Answer #3: You should be able to get your 401k’s without talking to your previous employer
“I’m not faith familiar service. But you should be able to get your 401k’s without talking to your previous employer by calling them directly. If you don’t remember who it was, you should be able to Google it if they post their benefits online. Or ask a friend who still works there. Or send a letter or email avoiding direct contact with anyone you know who still works there. Hope that helps.” —SVIC Member
Answer #4: Just for fun
“My brother’s beagle ate his 401k statement once. That dog had no understanding of where his kibble came from.” —SVIC Member
Answer #5: I’d think you’d need to get a lawyer involved
“I don’t know the nuances of beagle, if you don’t want to communicate with the prior business or the HR about an old 401k, I’d think you’d need to get a lawyer involved?” —SVIC Member
Answer #6: You shouldn’t need to talk to your employer
“You shouldn’t need to talk to your employer in this process, even without a service” —SVIC Member
Answer #7: Overall I’d say it’s pretty easy
“I have done this a few times (without any app), I never had to speak to anyone from my previous companies. Overall, I’d say it’s pretty easy. You must have an account with the new admin at the time you initiate the rollover. Typically, you contact the old admin, they mail you a check which then you mail to or bring to a physical branch of the new admin.
In some cases, the old admin allows you to do everything online (e.g. ADP). In other cases, the new admin (where you rollover the funds) is happy to call the old admin on your behalf. As a minimum, they usually offer to be with you on the call to the old admin if you like. In general, the new admins are eager to get your money so they are willing to guide you through the process, explain the steps, and clear any roadblock.
The one important thing to remember is that, the check should NOT be payable to you directly, but to “<new_admin> FBO <your_name>”. This way, it’s guaranteed that this is purely an admin-to-admin transfer and the money is never directly available to you, so there are no tax liabilities.
Also, keep in mind that you can rollover 401k → 401k or 401k → IRA. The advantage of doing 401k → 401k is that you can use an existing account (e.g. use the 401k of your current employer). The advantage of doing 401k → IRA is that you have access to individual stocks, ETFs, etc.” —Enrico Schiattarella, SVIC Member
Check out the discussion over at the SVIC Facebook Group. See you there!
