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IRA Direct Transfer Question
Old 05-26-2017, 08:28 PM   #1
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IRA Direct Transfer Question

My NFCU IRA CD matured and I'm moving funds to Ally. NFCU has no form for direct transfer to an outside IRA. I initiated a direct transfer from Ally but NFCU says they never got the form. I went into NFCU branch to request a check payable to Ally FBO <me> but they say no we have to mail the check to Ally. Ok. Three days go by and the call to say they can't do it. Instead they make it out the way I originally requested and mail it to me and I need to mail it to Ally. I'm waiting for a check in the mail but they already docked my account. Can they do that? I expected the funds would stay on deposit until the check cleared. It's only a few pennies but still. I've been screwing with this xfer for a month.
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Old 05-27-2017, 04:42 AM   #2
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From their perspective, the money is in the check, not in the account, so they will show the deduction.
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Old 05-27-2017, 07:56 AM   #3
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I think you'll have to submit Ally's form with your transfer so that it's properly recorded with the IRS.
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Old 05-27-2017, 10:46 AM   #4
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Quote:
Originally Posted by jazz4cash View Post
.... Can they do that? I expected the funds would stay on deposit until the check cleared. It's only a few pennies but still. I've been screwing with this xfer for a month.
Yes, that is the way it typically works for accounts like that... different from checking account... they reduce your account with they issue the check... you relay the check to Ally and they deposit it in your account.
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Old 05-27-2017, 02:11 PM   #5
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I think you'll have to submit Ally's form with your transfer so that it's properly recorded with the IRS.


Yeah I planned on that but not sure there is a form for that so I'll improvise.
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Old 05-27-2017, 02:19 PM   #6
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Yes, that is the way it typically works for accounts like that... different from checking account... they reduce your account with they issue the check... you relay the check to Ally and they deposit it in your account.

As I think about this you are correct and xfers from Fido have been handled the same way but I had more control over the deposit.
If the check gets lost in the mail it could be a real hassle. Now I'm thinking it might've actually been better to do a rollover vs direct transfer. I avoid rollovers since there is a one per year limitation it could be a source for a temporary loan in case of an emergency.
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Old 06-06-2017, 05:59 PM   #7
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Update
I have submitted three requests to NFCU to transfer funds. Two other financial institutions are involved. Only one has been processed but I had to intercede on both ends. When NFCU received the request they sent entire balance instead of requested amount. I check balances daily so I caught the problem and called. The check was retrieved from the outgoing mail. When the new custodian received the funds the put in IRA savings instead of opening the CD I requested. Another call. NFCU never received the request from ALLY so I tried to get them to issue a check payable to Ally which they said they could do but they didn't. The sent a check payable to me so that makes it a distribution/rollover. I'm working on returning the check but they won't take it back unless it is lost/destroyed. I am appreciating FIDO more than ever right now. This has been going on ~2 months.
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