Author Topic: IRA Rollover / Transfer  (Read 1127 times)

zenyata

  • 5 O'Clock Shadow
  • *
  • Posts: 50
IRA Rollover / Transfer
« on: May 01, 2016, 10:04:59 AM »
I think this is a pretty basic question but I've never dealt with it before so wondering if any MMM friends could offer advice.

My partner in crime recently cashed out of an IRA with a local bank and wanted to roll it over into an existing Vanguard IRA.  She was a bit upset with said bank and basically just yanked the money out, not realizing that perhaps the easiest way to transfer to Vanguard would have been a direct electronic transfer... so in hindsight that probably would have been the way to go... but she didn't and now here we are :)

So with check in hand issued by the bank does she now cash that check and deposit the same amount of money into the Vanguard account within a certain amount of time and that's all she really needs to do to avoid any tax implications or does the check need to somehow be signed over directly to Vanguard / are there other forms that need to accompany the transfer etc.

Thanks for any info you can provide.

tomorrowsomewherenew

  • Stubble
  • **
  • Posts: 129
  • Location: Florida
Re: IRA Rollover / Transfer
« Reply #1 on: May 01, 2016, 10:40:43 AM »
Just give Vanguard a call and explain what you did. They should be able to help you out, no problem.

Catbert

  • Handlebar Stache
  • *****
  • Posts: 1833
  • Location: Southern California
Re: IRA Rollover / Transfer
« Reply #2 on: May 01, 2016, 10:52:40 AM »
Just make sure the money gets into another IRA within 60 days.  Also double check that the bank didn't withhold any money for taxes (I can remember if they do that for IRA "distributions").  If they withheld taxes your PIC will need to add to what she got from the bank to avoid taxes penalties.