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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Ramza Beoulve on March 26, 2016, 03:49:20 PM

Title: First-Time Roll-Over Questions
Post by: Ramza Beoulve on March 26, 2016, 03:49:20 PM

I am rolling over money from my 401(k) to Vanguard. I already have an IRA with Vanguard. There's is an online form for the company to send me the money in terms of a check. They won't do a trustee-to-trustree transfer. It is payable to Vanguard, so it is ent to my address and I have 60 days to get it to Vanguard.

• The field does not allow me to enter Vanguard's complete name of "Vanguard Fiduciary Trust Company". Rather it cuts off the last 4 letters. Am I OK?
• There is a priority option to process the check in 2-3 days rather than 7-10 days for processing. The fee is $25. The money in question being moved is ~$7250. Worth?
• How do I endorse the check that is payable to Vanguard?
• Because I am mailing Vanguard the check, what option should I use to send it?

Title: Re: First-Time Roll-Over Questions
Post by: Jim2001 on March 26, 2016, 06:56:50 PM

Ramza,

1. It's likely just fine, but you can call Vanguard and ask to be sure.
2. $25 is 1/3 of 1%.  You may make more than that in the days out of the market, or you may make less.  I wouldn't pay the extra $25.
3. It should be written to Vanguard, "for the benefit", or "FBO" you.  They will endorse it.  Don't send an endorsed check through the mail.  When you call to ask about #q, you can confirm this as well.
4. When I've done these transfers, I've just sent them regular mail.  If you want you could send it with a tracking, or signature required.  Really your choice.

That's my $.02 - Hope it helps.