Author Topic: Roth transfer from a bank  (Read 2664 times)

Dpwyatt91

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Roth transfer from a bank
« on: November 16, 2017, 01:30:56 PM »
I have a roth ira cd at capital one. Big mistake made before learning anything about ira's and such. Im wanting to move it to my ira at vanguard but having trouble doing so. The bank said I can just move it and vanguard will initiate the transfer. Vanguards paper work says it can't transfer a CD. Trying to figure out my best options. The CD matures September 2018. So is there a way to do it before then or just wait till it matures. It only earns .75%. The fee to end it early would be $320

TexasRunner

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Re: Roth transfer from a bank
« Reply #1 on: November 16, 2017, 01:33:43 PM »
We would need to know principle balance on the CD before anyone could give a financial assessment.

That's pretty cheap tuition compared to many of the mistakes that get posted on here, so, Congrats!

Dpwyatt91

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Re: Roth transfer from a bank
« Reply #2 on: November 16, 2017, 01:39:57 PM »
Uhh thinks I guess haha. And it's 9960

slappy

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Re: Roth transfer from a bank
« Reply #3 on: November 16, 2017, 01:58:41 PM »
If you want to move it, Vanguard should have the appropriate paperwork. If not, just liquidate it and then contact Vanguard to move it. Moving IRAs from a bank like that is kind of a pain and takes a few weeks, but it can be done. Vanguard would be the one to initiate it.

Alternatively, you could have the credit union make a check payable to Vanguard and do a 60 rollover. It's not always preferable because you can only do one 60 day rollover per social per year.  Also, the CD will still have to be liquidated.


Dpwyatt91

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Re: Roth transfer from a bank
« Reply #4 on: November 16, 2017, 02:15:41 PM »
Ya I'm finding out that it is a pain.  so I got the paper work from vanguard and It says I need a 90day statement from capitalone..great that only takes 5 to 8 business days. Once I get that hopefully the rest will be smoother.

terran

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Re: Roth transfer from a bank
« Reply #5 on: November 16, 2017, 02:34:32 PM »
I'm guessing any issue you're having is if what you're telling vanguard has led them to believe you want to transfer the actual CD. Since the CD is a Capital One product Vanguard can't hold such an asset, so they're telling you they can't do it. Try to make it clear you want to transfer an IRA and liquidate any assets it holds.

Make sure Capital One will let you break the CD contract and transfer cash to vanguard.

While a trustee to trustee transfer is the cleanest way to do it, it's also possible to have the IRA paid out to you and then you fund the rollover at Vanguard. I'm not sure what the specifics of this are, so if you go this route do some research to make sure you've dotted you i's and crossed your t's

Dpwyatt91

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Re: Roth transfer from a bank
« Reply #6 on: November 16, 2017, 02:58:00 PM »
Ya I just called and it seems the 60 day rollover is the easiest route. Where I don't have to wait weeks for some paper work to.come in from the bank. Vanguard said I can liquidate the CD at capital one then either have a check mailed to them or I can deposit it to my account and transfer it that way. Probably going to just mail it to them.

slappy

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Re: Roth transfer from a bank
« Reply #7 on: November 16, 2017, 03:12:48 PM »
Ya I just called and it seems the 60 day rollover is the easiest route. Where I don't have to wait weeks for some paper work to.come in from the bank. Vanguard said I can liquidate the CD at capital one then either have a check mailed to them or I can deposit it to my account and transfer it that way. Probably going to just mail it to them.

Ask Capital One if they will make the check out to Vanguard. They may require a special form to do so.

Dpwyatt91

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Re: Roth transfer from a bank
« Reply #8 on: November 16, 2017, 03:41:32 PM »
I will. If not I guess I could just put it in my account and then transfer it online? Would that be easier than mailing a check to them?

slappy

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Re: Roth transfer from a bank
« Reply #9 on: November 17, 2017, 05:51:09 AM »
I will. If not I guess I could just put it in my account and then transfer it online? Would that be easier than mailing a check to them?

Yes you could do that as well. You will get a 1099 from Capital One and a 5498 from Vanguard.

Dpwyatt91

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Re: Roth transfer from a bank
« Reply #10 on: November 17, 2017, 06:18:31 AM »
Ok cool. I think I'm going to do that monday. The bank was closed before I could decide. That way I don't have to wait for it to be mailed. It's faster I assume.   Thanks for all the help. This is my second post and have learned a lot from everyone answering questions and just reading other post.

Dpwyatt91

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Re: Roth transfer from a bank
« Reply #11 on: November 18, 2017, 11:35:55 AM »
One more question about this. I did a roth backdoor this year and was wondering if the roth rollover i plan on doing this comming week would have any effect to the roth backdoor since you can only do 1 rollover per account in a 12 month period. I don't think it does since one is a conversion and the other is a rollover but just thought I'd ask. Thanks in advance

 

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