Initiating a Rollover

What is a rollover?

A rollover is the process of transferring funds from one retirement account to another, such as moving assets from a 401(k) to an IRA or from one IRA to another. The purpose of a rollover is to consolidate retirement accounts, change investment options, or move funds when changing jobs.

What options do I have with my old 401(k) or QRP?

With a 401(k) plan, you have the following four options:

1. Leave the Money in Your Current Plan: If your plan allows, you can keep your funds in your current employer’s 401(k) plan even after you leave the company.
2. Roll Over to a New Employer's 401(k): You can transfer your 401(k) funds to your new employer’s 401(k) plan if the new plan accepts rollovers.
3. Roll Over to an IRA: You can move your 401(k) funds to an Individual Retirement Account (IRA) for potentially more investment options and control over your assets.
4. Cash Out: You can withdraw the funds from your 401(k), though this may result in taxes and penalties if you are under age 59½.

What is the difference between a direct and indirect rollover?

A direct rollover and an indirect rollover are two methods for transferring funds from a retirement account, such as a 401(k), to another retirement account or IRA. Here’s how they differ:

Direct Rollover

• Process: Funds are transferred directly from the old retirement account (e.g., 401(k)) to the new retirement account (e.g., IRA or new 401(k)).
• Tax Implications: There are no tax consequences or withholding requirements. The funds never touch your personal bank account.
• Timing: Generally quicker and more straightforward, as the transfer is handled directly between financial institutions.

Indirect Rollover

• Process: Funds are distributed to you personally, and you are responsible for depositing the money into a new retirement account. You may complete one indirect rollover every 12 months.
• Tax Implications: The distribution is subject to withholding taxes, typically 20%. You must redeposit the funds into a new retirement account within 60 days to avoid taxes and potential penalties on the distribution.
• Timing: Can be more complex due to the requirement to deposit the funds yourself within the 60-day window. Failure to do so may result in taxes and penalties.

How do I initiate an indirect rollover?

An indirect rollover requires you to first deposit the distribution check received from your Plan administrator. Once the funds are distributed, you have exactly 60 days to contribute those funds into an eligible IRA. You may complete this contribution through either ACH or Wire transfer. When making this contribution, please ensure you select "60 day indirect rollover" as the contribution type.

How do I initiate a direct rollover?

To initiate a direct rollover, begin by consulting with the delivering financial institution.

• If you are transferring your rollover using Capitalize, you may click here for more information.
• If you are completing the rollover via wire, first obtain the required wire remittance information here, along with your Webull account number.
• For a direct rollover via check (the most common method), provide the following payment instructions to your delivering institution:

Regular Mailing Address:

Webull Financial LLC

P.O. Box 735552

Chicago, IL 60673-5552

Payable to:

Webull Financial LLC FBO [NAME], [WEBULL ACCOUNT NUMBER]

Overnight Mailing Address:

JPMorgan Chase – Lockbox Processing

Attn: Webull Financial LLC 735552

131 S Dearborn, 6th Floor

Chicago, IL 60603

Payable to:

Webull Financial LLC FBO [NAME], [WEBULL ACCOUNT NUMBER]

Please be aware that for IRA deposits, we can only accept checks issued directly from a bank, broker, or fund. Personal checks or money orders cannot be accepted.

When can I use rollover funds?

Rollover funds can be used for trading seven to eight business days after they are credited to your account. For example, if the funds are credited on a Monday, they will be available for trading on the Wednesday or Thursday of the following week.

How do I request a Letter Of Acceptance (LOA)?

To initiate your request, please contact us via our in-app Help Center or email IRA@webull.com. In your message, include the following details:

1. Name of the delivering financial institution
2. Account type and number from the other firm
3. Specific Webull account into which the funds will be transferred

How do I initiate an outgoing rollover?

When rolling over assets from your IRA to another retirement account, you have two options:

Direct Rollover

Fill out the appropriate distribution form below depending on your account type and request a check or wire to be sent directly to the custodian of the new retirement account. The rollover check will be mailed to the mailing address on your account unless otherwise indicated on the form.

Indirect Rollover

Initiate an ACH withdrawal directly on our app or website. Ensure you review or modify the default tax withholding amount when submitting your request if necessary. Alternatively, you can fill out the appropriate distribution form below and request a check or wire to be sent to you. You will then have 60 days to deposit the funds into an IRA or QRP account to avoid potential taxes and penalties.

Distribution Forms

Traditional and Rollover IRA

IRA Distribution form

Roth IRA

Roth IRA Distribution form

Once the form is completed and signed, please send your document to us via the in-app Help Center or by sending an email to IRA@webull.com. A $25 processing fee applies to all outgoing rollover checks and wire transfers.

For more information about rollovers and the rules that govern them, please visit irs.gov.

Please consult with your plan administrator or a trusted financial advisor to confirm that you are completing an eligible rollover. Due to IRS and SEC regulations, Webull cannot correct or alter ineligible rollovers, which may lead to additional taxes or penalties. For information on eligible account types for rollover, refer to the IRS rollover chart.

Contact your retirement plan administrator to specify the delivery method for the assets. A direct rollover avoids tax withholding and IRS penalties.