Can I move part of my IRA funds to another bank?

[Debinnov a]

I visited a credit union this week that has a CD with a decent EWP for IRA monies. I have my traditional IRA Invested at Vanguard (I am retired and no longer contributing) and have some uninvestd cash in that IRA account that I would like to transfer to this credit union's IRA CDs.

The rep told me the government only allows one IRA account and that I would get in a lot of trouble opening and transferring money into an IRA account at their bank. She seemed a bit green and that didn't seem accurate. Should I have been allowed to do this?



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[Souschef]

I visited a credit union this week that has a CD with a decent EWP for IRA monies. I have my traditional IRA Invested at Vanguard (I am retired and no longer contributing) and have some uninvestd cash in that IRA account that I would like to transfer to this credit union's IRA CDs.

The rep told me the government only allows one IRA account and that I would get in a lot of trouble opening and transferring money into an IRA account at their bank. She seemed a bit green and that didn't seem accurate. Should I have been allowed to do this?
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That is hogwash. You can have as many as you want.

 

[Debinnov a]

That is what I thought. I even tried to tell her several times that she was mistaken and she was adamant. I will be making a call to her Mgr. tomorrow. Frustrating because it is a smaller regional credit union 14 hours from me and I wanted to handle things while I was travelling in that area this past week.

Wonder how much business she has cost them...

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[growerVon]

Agreed. If you're in the US, at least, I know of no such limitation and myself would be afoul of it right now. Definitely express your disappointment at the unfruitful initial exchange with their rep and see if they can make the rest of the process easier for you, given the distance & opportunity cost already lost.

 

[DrRoy]

I have occasionally bought CD's from accounts at other institutions. You might check with Vanguard and see if you can also. Even if they cannot get the one you are looking at, they may be able to match the rate. It would be less trouble than setting up a new account.

 

[pb4uski]

....The rep told me the government only allows one IRA account and that I would get in a lot of trouble opening and transferring money into an IRA account at their bank. ...

I guess that I am in big trouble then because I have tIRAs with Vanguard and PenFed.

You would have been better off to insist on talking to a manager while you were there.

 

[MRG]

Run far away from that bank they appear to be clueless.

 

[Car-Guy]

Yes you can..... I've had as few as one and as many as eight at one time (all at "different" institutions). I've split them, merged them, opened new ones, closed a few and even done partial transfers from one to another.

If you have more than 250k in an FDIC insured tIRA, you probably want tIRA accounts at different banks to stay under the 250k FDIC limits in each account.

Just be careful how you move the money around. Read up and understand the "important" differences between things like direct tIRA trustee to trustee transfers, withdrawals, and especially issues with "rollovers", etc. I've found it best to stay away from rollovers when moving money around. To many issues and limitations. Direct trustee to trustee transfers have worked very well for me.

It's not complicated but the terminology can be a little confusing at first.

 

[Debinnov a]

Thank you, everyone for the feedback.

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[ERD50]

Run far away from that bank they appear to be clueless.

This.

I would not want to have an IRA at a place that knows so little about IRAs.

My MIL had a half-dozen IRAs at a local bank. Every year she made a contribution the bank created a separate account, with each a separate CD (like the CD was the 'account', or something). And we wanted to consolidate hers with the spousal rollover from her recently departed husband (my FIL). Paper work required for each and every 'account' there.

Anyway, it was a real pain to unwind it and get it all transferred to Fidelity. But once there, smooth as silk. One IRA, one RMD. EZ.

-ERD50

 

[Bflotomny]

This answer must be taught at “financial institution college” because a few years ago I had money at a local bank and wanted to split the funds between the bank and Vanguard. I received the same information from the bank.