Inherited IRA Saga (cont.)

[ronin]

After all the going through all the crap with Chase to get the acct out of their clutches, I am at the point of needing to take the RMD for this year (hadn't been taken before my Mom's passing).

In order to get the RMD either transferred to a taxable muni bond acct (my first choice) or transferred directly to my checking (2nd choice) we now need to get a medallion signature guarantee for my wife because she is joint owner on both of these.

So it turns out that our bank doesn't do it. Our credit union doesn't do it either. She has a joint acct w/her mom at Wells Fargo. They can do it but won't, because her name isn't on the IRA distribution form (other than her signature at the end that needs the medallion). Tried to explain that since it is my IRA, her name wouldn't be on the account. Like pulling monkeys from a body cavity, got nowhere with them. That's it for our financial institutions.

At this point, I guess I'll just have them mail me the check. Then I will turn around and mail them a check to deposit it in the muni fund. Seems pretty stupid. I don't know about this medallion thing if you can't get it done. Seems like there'd be a better option. I probably will try to get the medallion thingie at some point if I can figure out how. Maybe have to make a journey to the IRA custodian's office at some point, if they will stamp the thing.

 

[GrayHare]

Your best chances are at the institution receiving the money, the bigger the institution (and the bigger the $) the easier it will be.

 

[pb4uski]

I feel your pain. Medallion signatures are a PITA. A few years ago we needed one and I actually opened a savings account at the bank and then they would do it. The $100 sat in there earning squat for a few years at which time I decided we would not likely need medallion signatures again and I closed the account. Both the bank and I would have been better off to have them just charge me $5 for the service.

We also needed them for something more recently but luckily DW has an account with a bank that does them. I understand that banks are becoming more and more reluctant to do these medallion signature guarantees.

 

[Alan]

We had to get Medallion signatures about 18 months ago and since we have only an internet bank I expected to have to pay, but in the end we walked into our closest branch of Chase bank where they signed and stamped the documents for free. We have a Chase credit card but they didn't ask to see it to prove we were Chase customers. We were very pleasantly surprised.

 

[kaneohe]

We had to get Medallion signatures about 18 months ago and since we have only an internet bank I expected to have to pay, but in the end we walked into our closest branch of Chase bank where they signed and stamped the documents for free. We have a Chase credit card but they didn't ask to see it to prove we were Chase customers. We were very pleasantly surprised.

Good to know. We also got Medallion signature guarantees a few months ago at Chase where we had a small savings and perhaps a checking account at the time.
I didn't think about the credit cards which we also have and am now considering closing the bank accounts so hopefully the credit cards may be enough. They may have known you had the credit cards via their computer which may be why they didn't ask to see them. I know Chase keeps a good history of their customers..........when we opened the most recent bank accounts the rep was reciting our prior history with them which is why I am somewhat reluctant to open/close accounts too frequently w/ them for their signup bonuses.

 

[MichaelB]

In order to get the RMD either transferred to a taxable muni bond acct (my first choice) or transferred directly to my checking (2nd choice) we now need to get a medallion signature guarantee for my wife because she is joint owner on both of these.

Sorry for your troubles with this. We've been through it, when the financial institution does not want to be helpful it's a real PITA. We have accounts at Fido, they do medallion. Schwab does as well.

You're taking a RMD from a beneficiary account in your name and want to deposit in a joint account that includes your name, and they still won't take the check? That's ornery. No exposure for them. My guess is they want you to open a checking account with them and deposit the RMD there.

 

[kaneohe]

Sorry for your troubles with this. We've been through it, when the financial institution does not want to be helpful it's a real PITA. We have accounts at Fido, they do medallion. Schwab does as well.

MichaelB............I was surprised to hear that Schwab does this. I've asked in the past and the answer was no. I just called the tollfree number and the answer was no . The rep told me they do notary stuff only.......in the past, that was only for Schwab paperwork.......don't know if that's changed. Maybe each branch is different?

 

[rodi]

Last time we needed a medallion signature we still had a Chase (legacy WaMu) account. When my husband was dealing with his dad's estate/inherited IRA, he was able to get them to wave the medallion sig requirement for the 6 beneficiaries because they were all taking distributions. Initially they were going to require it for distribution payments of about $2k each.

We no longer have a chase account - only credit union and schwab... so we'd be hosed if we needed this.

 

[ERD50]

I'm helping MIL and family settle FIL's estate, and needed medallion signatures for stock certificates held at two different transfer agents. They also had a few paper (!) certificates (ooooh, pretty!).

I suggested we open accounts at Fidelity, since they have B&M offices nearby and siad they could do all this. We made an appointment, and they were very helpful with everything (though I should maybe reserve judgement until all the transactions get posted). The paper was actually straightforward at Fidelity, she just signed them over to Fidelity (these are in trusts, and she is the successor trustee, needed death certificate and the relevant trust pages). The ones at the transfer agent required the medallion signature, just to get re-titled with the new EIN for the trust to replace the SSN, they will get moved to Fidelity once that is done.

Now we can consolidate their mish-mash of accounts they opened over the years

-ERD50

 

[38Chevy454]

When I needed medallion signature it was a small PITA. My credit union did not do it, so I just went to local Fidelity office and they do it.

 

[MooreBonds]

Both the bank and I would have been better off to have them just charge me $5 for the service.

I realize medallions are a pain to get...but you have to remember that the bank is taking on liability - they are essentially legally certifying that you are who you say you are.

For someone to walk off the street and show them what they say is a driver's license to get a certified signature involving an account of several hundred thousand dollars does involve some liability. All it would take is just one instance of fraud involving a significant sum of money, and the legal fees alone (much less any settlement) would run tens of thousands of dollars.

However, if you open an account with them, they then have more ability to verify your identity, get your SSN, pull a credit report, get more info on you , etc.

Furthermore, the last time I had to get a medallion (at a local branch of a regional bank), they wanted to know the dollars involved! Some banks will only guarantee amounts up to a few hundred thousand. If it's for something involving 7 or 8 figures, they might actually refuse, or just refer you to a higher-up in the bank.

 

[MichaelB]

MichaelB............I was surprised to hear that Schwab does this. I've asked in the past and the answer was no. I just called the tollfree number and the answer was no . The rep told me they do notary stuff only.......in the past, that was only for Schwab paperwork.......don't know if that's changed. Maybe each branch is different?

It has been a while, but it was at a local Schwab office.

 

[pb4uski]

....However, if you open an account with them, they then have more ability to verify your identity, get your SSN, pull a credit report, get more info on you , etc.

Furthermore, the last time I had to get a medallion (at a local branch of a regional bank), they wanted to know the dollars involved! Some banks will only guarantee amounts up to a few hundred thousand. If it's for something involving 7 or 8 figures, they might actually refuse, or just refer you to a higher-up in the bank.

Yes, I have heard that some banks will only cover a certain amount and have a faint recollection of the bank asking how big the account being transferred that the form we needed a medallion signature guarantee was.

The odd thing is, as I recall I was able to open the account with just my license as ID and they opened the account and then immediately did the guarantee. In the timeframe they had there was no way they could have run credit, etc.

Perhaps the real ID process that I had to go through as part of my recent driver's license renewal will help as it will provide a more secure form of identification.

 

[ronin]

What gets me is that the total account is under $13k and I want to transfer the RMD from the IRA to another account with the same institution. We've had joint accounts and both have IRAs with them for decades. It's like we are notorious international gangsters. I plan on calling them later today to see what they can recommend at this point.

 

[Meadbh]

SEC.gov | Medallion Signature Guarantees

"If you have general questions about Medallion signature guarantees or how the Medallion program works, you can send an email to Kemark Financial Services, Inc., the program administrator for STAMP and SEMP, at contactkfs@kemark.com. The SEC provides Kemark’s email address for information purposes only. We cannot endorse any commercial entity, and we do not endorse or recommend any of its products or services. For specific questions about a security, the Shareholder Services Department of the company whose shares you own or its respective transfer agent may be best suited to assist you."

It does seem strange that your home institution is not willing to vouch for you. It could be bias from having been caught out recently, or it could be an uninformed employee. I presume you have already discussed this with a manager. If not, that's what I would do.

 

[scrabbler1]

When I ERed 6 years ago, I had to liquidate my entire 401k because I had chosen to use NUA on the large amount (about $300k) of company stock in the account. I needed a medallion signature in order to have the proceeds of the company stock sent electronically to my local bank account (BofA).


It was a minor nuisance to get a medallion signature from BofA. I had to make 4 visits to 3 branches before I could get the signature. The reasons it took me so much trouble were kinda dumbass: At the branch near my office in Jersey City, New Jersey, I was waiting way too long for someone to help me and couldn't stay there for 30 minutes when I had to be at work. Then, at my home branch the bank manager was away and the asst manager did not have the key to her desk to get the special signature stamp. I then went to another nearby branch but did not take all the supporting documents, just the bare page the stamp would be applied to. Then again, nobody at the other two branches ever pointed this out to me because they never LOOKED to see what I had with me. When I made a second trip to that third branch with the whole package, I got the stamp in 5 minutes. The money transfer went through with no problems.

 

[MBAustin]

Bank of America recently (less than 6 months ago) stopped providing Medallion guarantees under any circumstances. This also includes Merrill Lynch (owned by BoA) who wouldn't provide a guarantee for the form to transfer stock from my account there to a charity - and their form requires the guarantee. I ended up going to the brokerage firm that the charity uses and they were happy to do it - but it took a 15-mile drive and parking hassles to get it.