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IRA withdrawal
Old 05-15-2018, 05:48 PM   #1
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IRA withdrawal

I have an IRA at Vanguard. I have been thinking about moving part of it to CD's
The last time I attempted to do this I was told that I could only move 100% to a new organization. I got that info from a bank that was holding the IRA in CD's
I would like to move 40-50% to Cd's and maintain the balance at VG.
Does anyone see an issue with doing this from the IRS viewpoint
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Old 05-15-2018, 06:25 PM   #2
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Originally Posted by Bflotomny View Post
I have an IRA at Vanguard. I have been thinking about moving part of it to CD's
The last time I attempted to do this I was told that I could only move 100% to a new organization. I got that info from a bank that was holding the IRA in CD's
I would like to move 40-50% to Cd's and maintain the balance at VG.
Does anyone see an issue with doing this from the IRS viewpoint
Is that with withdrawal or not? Because If you don't withdraw you can buy brokered CDs at vanguard. If you withdraw it of course you get a check and can do with the check as you please.
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Old 05-15-2018, 07:28 PM   #3
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It sounds like the bank CDs did not permit partial withdrawals from the CD so if you withdrew early from the CD, a bank typically has no other attractive investments for IRA. That shouldn't be an issue at Vanguard where they have all sorts of suitable IRA options including CDs.
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Old 05-15-2018, 07:36 PM   #4
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You could call Vanguard and ask them. I would think you could do a roll over to another institution if that is what you are asking. I am pretty sure Vanguard would not feel too bad about keeping part of your IRA.
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Old 05-15-2018, 08:27 PM   #5
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"UPON Further review" Yes I'm talking about a trustee to trustee partial withdrawal from VG to a another institution
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Old 05-16-2018, 06:35 AM   #6
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"UPON Further review" Yes I'm talking about a trustee to trustee partial withdrawal from VG to a another institution
I do not believe that should be an issue if its one IRA custodian to another, and should not cause any IRS red flags.
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Old 05-16-2018, 06:38 AM   #7
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No problem.... I did one a few years ago to PenFed.

However, before you do that, how long a CD are you buying and what is the rate? You can buy CDs from Vanguard. See https://personal.vanguard.com/us/FixedIncomeHome

Another CD like option is Vanguard Ultra-Short-Term Bond Fund Investor Shares (VUBFX)... yield is 2.29% and duration is 1 year...very stable share price history.
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Old 05-16-2018, 06:40 AM   #8
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"UPON Further review" Yes I'm talking about a trustee to trustee partial withdrawal from VG to a another institution
This link may help you answer the question.


https://www.sapling.com/6799327/ira-...rollover-rules
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