How to Help Clients Get Rollover Checks to Custodians

Here are our tips on getting Rollover Checks to Custodians!

Clients can mail checks directly to the custodian, as long as they’re diligent about labeling the envelope or package correctly and including their return address. The most important thing to be careful about is using the right address for the right delivery method:

• Use the overnight delivery address only for UPS, FedEx, or USPS overnight packages.
• Use the standard mailing address only for USPS First Class or Priority Mail.

Mixing these up can definitely cause issues.

A common best practice is for advisors to pre-print the shipping label, attach it to a self-sealing envelope, and either hand it to the client or mail it to them in advance—so it’s ready to go when the check arrives. I highly recommend this approach, and always include tracking. Custodians do occasionally misplace packages, and it’s really helpful to have a record of who signed for the delivery.

You can create fully addressed shipping labels through FedEx or UPS online. They’re not the most intuitive platforms, but it’s doable. USPS doesn’t typically allow preprinted labels unless you’re using a service like Stamps.com, which can be a good workaround.

Ultimately, the best shipping method depends on what’s easily accessible for your client. In rural areas, for example, USPS may be the only realistic option if FedEx or UPS drop-offs are far away. I haven’t personally used scheduled pickups through FedEx or UPS, but that could be an option if your client needs convenience.

Also worth noting—some rollovers can be directed straight to the custodian, depending on the 401(k) plan administrator. It's always worth checking if that’s possible.