hurricanegirl
Junior Member
Joined: Dec 21, 2010 16:28:17 GMT -5
Posts: 231
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Post by hurricanegirl on Jul 17, 2011 9:31:00 GMT -5
Hello
I need the full matchbook course please in laymans terms
Should I transfer or rollover? I am thinking a rollover since I could have a check cut to new bank, FBO my name IRA. I realize I only have 60 days to redeposit, and can only do one Rollover per year. Would this prevent me from having to pay paperwork fees to BoA. i can instruct no witholding.
Is there extra paperwork required come April 15 taxe time?
Whare are the pros/cons transfer vs rollover
What do I need to be careful about in order to have this not be a distribution?
Thanks
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Post by Savoir Faire-Demogague in NJ on Jul 17, 2011 9:54:59 GMT -5
I would wait for the CD to mature, then do a ROLL OVER. Be advised the bank you have the CD in, will most likely charge you to do the roll over. Expect a sizable fee, like around $100, maybe more, maybe less. This fee would more than likely wipe out any interest you've earned.
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hurricanegirl
Junior Member
Joined: Dec 21, 2010 16:28:17 GMT -5
Posts: 231
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Post by hurricanegirl on Jul 17, 2011 10:04:07 GMT -5
Sorry I did forget to tell you that this will mature late August, I would do nothing until maturity and then would like to handle in like one day, which I think is impossible with a transfer no?
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Deleted
Joined: Oct 31, 2024 18:24:56 GMT -5
Posts: 0
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Post by Deleted on Jul 17, 2011 11:46:08 GMT -5
It can be pretty quick depending on what day of the week you execute the paperwork. Also ask if your new bank will reimburse you for any of the paperwork fees. I know USAA does.
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Deleted
Joined: Oct 31, 2024 18:24:56 GMT -5
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Post by Deleted on Jul 17, 2011 16:00:31 GMT -5
I've never had a company charge me for transferring, is this common?
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happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
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Post by happyscooter on Jul 17, 2011 21:05:51 GMT -5
We have our IRAs in CDs also. When they mature, if the interest rate is higher somewhere else, I have to pay a fee to take it out?
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happyscooter
Senior Member
Joined: Jan 5, 2011 9:04:06 GMT -5
Posts: 2,416
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Post by happyscooter on Jul 17, 2011 21:12:28 GMT -5
right now, we have each year in a different place. interest rates were better so we went with more $$$. (I learned from the best-you guys!)
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Jul 18, 2011 4:59:47 GMT -5
"Should I transfer or rollover? " - moving an IRA account from one institution to another is called a "rollover"
"I am thinking a rollover since I could have a check cut to new bank, FBO my name IRA." - it is more efficient to have the financial institution directly send it to the new institution. You new financial institution can help (or should help) with that paperwork.
"I realize I only have 60 days to redeposit, and can only do one Rollover per year." - yes and yes.... but having bank A move the money directly to bank B is almost instantaneous so you will not loose out on the up to 60 days of interest.
"Would this prevent me from having to pay paperwork fees to BoA." - is B of A the new or old? the new bank would have paperwork to complete and the old will depend how the money is withdrawn and their policies.
"i can instruct no witholding." - on a rollover that is "trustee to trustee" no withholding is required.
"Is there extra paperwork required come April 15 taxe time?" - yes, but not much. You will get a 1099-R from the first bank showing that you rolled over the money.... but no tax is due as long as the rollover was completed within 60 days.
"Whare are the pros/cons transfer vs rollover" - rollover is a tax concept only, but you should do a trustee to trustee transfer and not touch a paper check.... it's easier, faster and safer.
"What do I need to be careful about in order to have this not be a distribution?" do not hold the money for more than 60 days.
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Bluerobin
Senior Associate
Joined: Dec 20, 2010 14:24:30 GMT -5
Posts: 17,345
Location: NEPA
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Post by Bluerobin on Jul 18, 2011 12:17:09 GMT -5
HG, open an IRA account at the new bank. Then have them go get the funds electronically. Then you don't have to worry about redepositing. Once they have the funds, you can switch to a CD.
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