IRA rollover ruling stuns advisers and savers - Robert Powell - MarketWatch
Anyone else here this? Ouch!
Anyone else here this? Ouch!
That's pretty interesting.
I think the one key here is that trustee-to-trustee "rollovers" are not included in this. Hence if you need to move your IRA from one trustee to another, this isn't a problem as long as you let them do it.
The problem comes if they cut a check and then you do the rollover.
Agreed the trustee to trustee rollovers are still unlimited since you never see the funds (and likely no check is cut just an electronic funds transfer) as well as no 1099s to putz with at tax time. Why anyone would use the other method is beyond me.
I've never done a direct rollover in the past because the going-from institution often charged a $25-35 fee for cutting the check to the going-to institution whether I picked up the check or they mailed it or the other institution requested it. If I picked up the check made out to me it was free and the timing was under my control.....pick up check same/next day and then mail....
so I guess the game changes for me since the terms and conditions for exit don't always coincide with good rates,etc.
If you are talking changing investments in the IRA you can do that as often as you like (or the custodian allows). The issue is changing custodians. For example you might move money from one fund at vanguard to another any time you like (subject to vanguards time limits on some funds).I was under the impression that you could do an IRA rollover once per year, whether it be a transfer or otherwise. I recently did a "transfer" of my IRA from a local bank to Vanguard Wellesley Admiral. Funds were wired between those institutions. Some statements being made sound like I can now move those IRA funds around whenever I want within Vanguard so long as I don't touch the money. Doesn't sound right to me.
I was under the impression that you could do an IRA rollover once per year, whether it be a transfer or otherwise.
IRA rollover ruling stuns advisers and savers - Robert Powell - MarketWatch
Anyone else here this? Ouch!
Agreed the trustee to trustee rollovers are still unlimited since you never see the funds (and likely no check is cut just an electronic funds transfer) as well as no 1099s to putz with at tax time. Why anyone would use the other method is beyond me.
I've never done a direct rollover in the past because the going-from institution often charged a $25-35 fee for cutting the check to the going-to institution whether I picked up the check or they mailed it or the other institution requested it. If I picked up the check made out to me it was free and the timing was under my control.....pick up check same/next day and then mail....
so I guess the game changes for me since the terms and conditions for exit don't always coincide with good rates,etc.
If they send you a check made out to the financial institution holding your rollover IRA then that counts as a direct rollover as it never touches your personal taxable account(s).
.
Alan, as I noted , I didn't want to do it this way because the sending instituion would have charged me that $30 fee for making the check out to the receiving institution but it was free if the check was made out to me.