If you’ve left your job, reached age 59½, or have rollover funds in your 401(k), you are eligible to request a distribution from your account. You can choose between a cash distribution (taxable) or a rollover distribution (not taxable if rolled into another qualified plan or IRA).

Who This Applies To

You can request a distribution or rollover if:

  • You have terminated employment
  • You are age 59½ or older
  • You have rollover funds in your account
  • You haven’t yet met your plan’s eligibility but previously rolled in funds from another plan or IRA

Distribution Options

You have two main options for accessing your funds:

  • Cash Distribution – Funds are sent directly to you and are subject to applicable taxes and possible early withdrawal penalties.
  • Rollover Distribution – Funds are transferred to another 401(k) or IRA. This option is not taxable if processed correctly.

For additional distribution details including how to request a cash distribution see: Understanding 401(k) Withdrawal Options and Processes 

How to Request a Rollover Distribution (Enrolled Participants)

If you’ve already enrolled and set up your online account:

  1. Log in to your account
  2. Go to the 401(k) menu on your employee dashboard
    (On mobile, this appears at the top of the screen)
  3. Select Withdraw/Rollover Out, then click Apply Now
  4. On the Withdrawal Method page, choose Direct Rollover
  5. Follow the onscreen instructions and click Submit

Tip: If the status says "Pending," your request has not been submitted. Be sure to complete all steps.

Requesting a Distribution From a Rollover Source (Not Yet Eligible)

If you’ve rolled funds into your plan but haven’t met eligibility or created an online account, you can still request a distribution from your rollover source:

  1. Download and complete the [Distribution Request Form]
    (Contact us if you need a copy)
  2. This form allows withdrawals only from rollover funds
  3. Follow the submission instructions on the form to send it securely

Payee Line Formatting for Rollover Checks

When a rollover is issued by check, the payee line must follow specific rules:

  • 30-character limit, including spaces and punctuation
  • Standard format:

[Receiving Institution Name] FBO [Your Name] Example: FIIOC FBO Jane Doe

Before submitting, confirm with your new custodian:

  • Their preferred payee format
  • Whether a shortened version is acceptable
  • Any abbreviations they allow

Optional Workaround for Long Payee Names

If the full name doesn’t fit:

  • Enter overflow text on Address Line 2 of the payee address
  • We can't guarantee that your new custodian will accept it, but this method has been accepted by many institutions so far.

Important Tax Information

The tax impact depends on the type of funds and where they’re going:

  • Pre-tax to Traditional IRA or 401(k): No taxes withheld or penalties
  • Roth to Roth IRA or 401(k): No taxes or penalties on earnings
  • Pre-tax to Roth IRA or Roth 401(k): Taxable conversion

Rolling Over Both Pre-tax and Roth Funds

These must be processed as separate requests to avoid unintended tax consequences:

  1. Submit a rollover request for your Pre-tax funds first
  2. After it's processed, submit a second request for your Roth funds
    • Rolling over both at the same time will convert pre-tax to Roth, creating a taxable event.

Rollover Processing Fees

See: Understanding 401(k) Withdrawal Options and Processes  for a list of all distribution/withdrawal fees.

If you request additional distributions within 30 days:

  • The second request will only be charged a $30 check fee if it is submitted within 30 days of the first

Need Help?

If you have questions or need assistance completing your request:

  • Chat is available 24/7 after logging in to your account by clicking the chat icon in the bottom right corner of the screen. 
  • Email us at info@myubiquity.com