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IRA transfer question

IRA transfer question

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by: foxymama Active Indicator LED Icon 14 OP 
~ 8 years ago   Jun 8, '15 1:40pm  
I have an IRA that reaches maturity next month and I want to change it to a Vanguard IRA instead of the current bank I am using. Do I need to wait till the maturity date? 4951
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tatertot58 Active Indicator LED Icon 15
~ 8 years ago   Jun 8, '15 2:28pm  
I have an IRA that reaches maturity next month and I want to change it to a Vanguard IRA instead of the current bank I am using. Do I need to wait till the maturity date?
 
@foxymama: When I transferred mine I did not wait.  Vanguard should be able to do everything for you.  I moved one and went to the people I wanted to move it to and they took care of everything.
4951
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ProblemAgain Active Indicator LED Icon 10
~ 8 years ago   Jun 8, '15 2:40pm  
do NOT depend on a community forum  for answers to financial questions. go to a real financial analyst who operates as a fiduciary to get  advice. if vanguard is a fiduciary that means they are responsible for giving you advice and selling you financial products that best serve YOUR needs, not their need to sell products. the trouble is some  financial product salespeople are just that: salespeople. their job is to sell you products regardless of the suitability to your needs. in any case, deal with someone who can be held accountable if their advice and actions are wrong and leave you with problems to deal with and taxes or bills to pay. 4951
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ForeCPA90 Active Indicator LED Icon 9
~ 8 years ago   Jun 8, '15 3:50pm  
100% agree with @ProblemAgain.  Part of the problem is that we do not have enough information to make sure the response is 100% accurate.That being said, If you are concerned about tax consequences, there are none if you are simply rolling to another IRA.  Most IRA's do allow you to roll over to a new IRA at anytime with no consequences, but there is a possibility that you may incur some penalties if you withdraw before an asset matures, this would depend on your particular investment.   4951
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ProblemAgain Active Indicator LED Icon 10
~ 8 years ago   Jun 8, '15 3:57pm  
and don't those have to be rolled directly?  in other words, you yourself can't take custody of the funds from a mature investment vehicle and then begin a new investment without  incurring tax consequences simply because you took them into your hot, sweaty little hands. 4951
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ForeCPA90 Active Indicator LED Icon 9
~ 8 years ago   Jun 8, '15 4:06pm  
and don't those have to be rolled directly?  in other words, you yourself can't take custody of the funds from a mature investment vehicle and then begin a new investment without  incurring tax consequences simply because you took them into your hot, sweaty little hands.
 
@ProblemAgain: Nope, you can withdraw the money, then you have 60 days to put it into another qualified retirement account.
4951
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ProblemAgain Active Indicator LED Icon 10
~ 8 years ago   Jun 8, '15 4:36pm  
so that means they changed those laws. at one time, you couldn't take custody, there had to be a direct transfer or there would be penalties incurred. when there was  a proliferation of the storefront investment firms in the early 90s, the ones who followed the multilevel marketing of investment vehicles ala amway, there were substantial numbers of people caught unaware as the sellers ''downstream" had no real financial or legal knowledge of the ins and outs of the methods  and the vehicles they were selling. 4951
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ForeCPA90 Active Indicator LED Icon 9
~ 8 years ago   Jun 8, '15 4:51pm  
so that means they changed those laws. at one time, you couldn't take custody, there had to be a direct transfer or there would be penalties incurred. when there was  a proliferation of the storefront investment firms in the early 90s, the ones who followed the multilevel marketing of investment vehicles ala amway, there were substantial numbers of people caught unaware as the sellers ''downstream" had no real financial or legal knowledge of the ins and outs of the methods  and the vehicles they were selling.
 
@ProblemAgain: It may have been that way in the past.  The current IRS code lets you take one distribution per year directly payable to you.  Now, by law, tax has to be withheld on that distribution, so you will need to have additional funds available to make up the whole amount when you put the funds into a new (or even the same) qualified account.  Then you would have to wait until you file your year end tax return to get a refund on the withheld taxes. http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Rollovers-of-Retirement-Plan-and-IRA-Distributions 4951
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Ray Active Indicator LED Icon 17
~ 8 years ago   Jun 8, '15 5:14pm  
do NOT depend on a community forum  for answers to financial questions. go to a real financial analyst who operates as a fiduciary to get  advice. if vanguard is a fiduciary that means they are responsible for giving you advice and selling you financial products that best serve YOUR needs, not their need to sell products. the trouble is some  financial product salespeople are just that: salespeople. their job is to sell you products regardless of the suitability to your needs. in any case, deal with someone who can be held accountable if their advice and actions are wrong and leave you with problems to deal with and taxes or bills to pay.
 
@ProblemAgain: I have nothing to ad. Took the words right out of my mouth. Sound Advice.
4951
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KW_Planner Active Indicator LED Icon
~ 8 years ago   Jun 8, '15 7:54pm  
@foxymama, IRA accounts don't mature...maybe I missed it in the other responses, but maybe the investment you have in your IRA is getting ready to mature?
 
I'd be happy to answer any questions you have regarding this. I am a fee-only advisor here in KW, so rest assured the answers you get from me will be what's in your best interest...not mine. Just shoot me a message or ask them on here! 4951
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foxymama Active Indicator LED Icon 14 OP 
~ 8 years ago   Jun 8, '15 9:58pm  
@foxymama, IRA accounts don't mature...maybe I missed it in the other responses, but maybe the investment you have in your IRA is getting ready to mature?
 
I'd be happy to answer any questions you have regarding this. I am a fee-only advisor here in KW, so rest assured the answers you get from me will be what's in your best interest...not mine. Just shoot me a message or ask them on here!
 
@KW_Planner: its a CD IRA investment.   
4951
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KW_Planner Active Indicator LED Icon
~ 8 years ago   Jun 8, '15 10:45pm  
[quote-end-tag-mismatch]
 
@KW_Planner: its a CD IRA investment.   
[quote-end-tag-mismatch]
 
@foxymama: I've never been a fan of CDs. Too many negatives compared to positives. There are better alternatives out there that would still fit within your risk tolerance (e.g. bonds and/or bond funds). If you want to discuss in greater detail just shoot me a message and we can chat offline.
 
4951
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