How hard or easy is it with Vanguard to transfer Many Roth IRA accounts in?

[John Galt III]

Hi,

I have about 10 separate Roth IRA accounts and two Traditional IRA accounts at my credit union, in CDs. The CDs are all earning around 1 %. I am thinking of breaking them, taking the 6 month interest penalty, and putting them into higher earning CDs somewhere.

The CD rates are only 3.5% ( 5 year term) at my credit union.

Vanguard cd rate is 4.9 % for 3 year, which I would move them to.

So I want to move them from my credit union to Vanguard. The Vanguard website says they will contact my credit union for me, but that paperwork may be involved.

Has anyone here done something similar at Vanguard?

How did it go ?


Thanks

 

[MarieIG]

Yes.

The first Vanguard rep who assisted me was better than the second, who was awful, but I had the form from the first transfer, so I reused some of the information.

Vanguard has an electronic bank account that accepts funds allowing for a much quicker transfer. I don't have that info anymore (and you would need to verify it in any event) but someone over at Vanguard should. You want a custodian to custodian transfer.

You will need the routing and account numbers from your credit union; and you would need Vanguard's Bank routing and account numbers. Your Roth can go into a Roth account (into a settlement fund) and Traditional IRA can go into a Traditional IRA settlement account. Once that has been done, you can choose your respective CDs.

 

[Dreamer]

I had my DH's and mine Roth IRA CD's transferred from PenFed to Vanguard. It was pretty easy.

I also had a partial rollover from my DH's 401K that we put into a traditional IRA at Vanguard. That one was slightly harder because one 401K check was made out to Vanguard and the other 401K check was made out to DH, since it was after tax money we had put in his 401K. Voya, who handles his 401K, would not send the check to Vanguard. They both had to be sent to him. We ended up depositing the Vanguard check by mobile check deposit. My DD happened to stop by and she did it for us. It took her a few tries and she does this all the time with her bank.

 

[oldtimer]

You should break your CDs and consolidate your 10 Roth IRAs and 2 tIRAs into 1 Roth ans 1 tIRA at your credit union before moving to Vanguard. Less accounts to keep track of and less chance of transfer errors between credit union and Vanguard - reduces finger pointing if there is a problem in the transfer.

 

[gauss]

Please remember that if you are transferring multiple IRAs then you will need a direct (ie custodian-to-custodian) transfer where you do not take custody of the funds. Multiple rollovers between IRAs would be a very bad thing.

Only one indirect/30 day rollover is allowed per year. The IRS will treat any other ones as a taxable distribution!

-gauss

 

[Midpack]

Vanguard will make it very easy. You are transferring funds TO them, so there’s not much more attractive, so it will get priority service. Yes I moved from Fidelity to Vanguard and rolled two 401ks to Vanguard, easy peasy.

 

[PaunchyPirate]

You should break your CDs and consolidate your 10 Roth IRAs and 2 tIRAs into 1 Roth ans 1 tIRA at your credit union before moving to Vanguard. Less accounts to keep track of and less chance of transfer errors between credit union and Vanguard - reduces finger pointing if there is a problem in the transfer.

I certainly would also suggest the OP do this if feasible. I would not want to stay on top of 10 separate transfers. If I had to do 10, I would do them one at a time and not start one until the previous one was confirmed properly done.

 

[pb4uski]

I have done this, but from 3 different credit unions to my Schwab tIRA over the last month. It has been real easy. Initiate the transfer online, print the transfer document, sign it, scan it and send it to Schwab via their secure email system. Then about a week later you see the money gone from your CU and in your brokerage account.

 

[John Galt III]

I certainly would also suggest the OP do this if feasible. I would not want to stay on top of 10 separate transfers. If I had to do 10, I would do them one at a time and not start one until the previous one was confirmed properly done.

Thanks for the suggestions, guys! The trick will be finding someone who knows the rules at my cu or Vanguard. Probably a better chance of that person being at Vanguard than my credit union. Yes, simplicity is the key. I hope my credit union will even allow me to consolidate the CDs. I am going to ask a lot of questions and re-ask same questions to a different rep. I think my general plan is to consolidate all the Roth CDs into one big Roth CD, and the 2 Traditional into one traditional CD, at the credit union. And hope they won't charge me to then break the 2 new CDs, ha ha. Probably a grace period would relieve me of any penalty. Then open an empty Roth IRA account and an empty Trad IRA account at Vanguard. Then ACH from the credit union Roth account to the new Vanguard Roth account, and same thing for the traditional, so it would be custodian to custodian.

 

[Sunset]

Thanks for the suggestions, guys! The trick will be finding someone who knows the rules at my cu or Vanguard. Probably a better chance of that person being at Vanguard than my credit union. Yes, simplicity is the key. I hope my credit union will even allow me to consolidate the CDs. I am going to ask a lot of questions and re-ask same questions to a different rep. I think my general plan is to consolidate all the Roth CDs into one big Roth CD, and the 2 Traditional into one traditional CD, at the credit union. And hope they won't charge me to then break the 2 new CDs, ha ha. Probably a grace period would relieve me of any penalty. Then open an empty Roth IRA account and an empty Trad IRA account at Vanguard. Then ACH from the credit union Roth account to the new Vanguard Roth account, and same thing for the traditional, so it would be custodian to custodian.

Nope.
After you have created the Roth and IRA account at Vanguard. Ask Vanguard to transfer the account contents from the CU. You may be able to fill out an online page on the site to request the transfer or over the phone, but it is not like transferring from a bank account to a stock account (ACH).

 

[Sunset]

Nope.
After you have created the Roth and IRA account at Vanguard. Ask Vanguard to transfer the account contents from the CU. You may be able to fill out an online page on the site to request the transfer or over the phone, but it is not like transferring from a bank account to a stock account (ACH).

Doing this myself, transferring 4 IRA CD's (each is treated as a separate IRA) by 5th 3rd bank.

Turns out 5th 3rd bank is one that Vanguard cannot simply pull in. So I filled out the online form, and printed the paper to take to 5th 3rd bank for a "wet" signature. Then I get to mail the forms to Vanguard, but will first ask about a secure message site to upload scans instead.

 

[jazz4cash]

will first ask about a secure message site to upload scans instead.

That’s a good idea. Sometimes a fax is accepted. If you must use USPS, use certified, registered, or priority mail.