401(k) and 403(b) Direct Rollover
If you would like to move assets out of a former employer's qualified retirement plan, such as a 401(k) or 403(b) plan, you may "directly roll over" your distribution from your retirement plan to a Parnassus IRA. There are no limits on the amount. If you conduct a direct rollover to a Parnassus IRA, you can avoid paying current taxes or federal withholding (20%) that would occur if the distribution were made directly to you in your name.
Follow these steps to arrange for a direct rollover:
- Contact your current plan administrator and complete the proper paperwork with them.
- Your plan administrator will then write a check to Parnassus for the benefit of your account. They will send this check either to Parnassus directly or to you. Both of these are considered direct rollovers and do not have adverse tax consequences if the rollover is completed in 60 days.
- Send us a completed IRA Application [pdf] indicating a direct rollover. If your institution sends you a check, include it with your application. Otherwise, instruct your institution to send us the check directly and send us your application without the check. We will finalize your account once we receive the proceeds and send a confirmation letter when the process is complete.