Question for Ally Bank IRA CD buyers re: fund transfers

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Question for Ally Bank IRA CD buyers re: fund transfers

Postby Browser » Sun Dec 30, 2012 11:21 am

I'm wondering if anyone has bought an Ally Bank IRA CD by transferring funds from their regular IRA account at Vanguard and can fill me in on how this works. What I'm looking for is a seamless way to transfer IRA funds between the Vanguard IRA and the Ally IRA CD -- both ways -- without having to take an IRA distribution as part of the process. I'm not sure that it can be done because I don't understand what Ally does (or doesn't do) and the online chat with them was worthless. I have these questions:

1) can you directly transfer funds from Vanguard IRA to Ally to purchase an Ally IRA CD? How does the process work and have you had any problems?
2) when the Ally IRA CD matures, can you directly transfer the proceeds back to Vanguard IRA -- in order to avoid the proceeds being paid out by Ally as an IRA distribution?
3) if you "break" the Ally IRA CD before it matures, can you directly transfer proceeds back to Vanguard IRA to avoid taking an IRA distribution from Ally? Some banks seem to regard breaking an IRA CD as synonymous with closing the IRA and taking a distribution of the account value, so you can't do a direct trustee-to-trustee transfer under this scenario and you are subject to mandatory 20% withholding tax.
If we have data, let’s look at data. If all we have are opinions, let’s go with mine. – Jim Barksdale
Browser
 
Posts: 3228
Joined: Wed Sep 05, 2012 4:54 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby Browser » Mon Dec 31, 2012 4:59 pm

I just can't believe there aren't any Ally Bank CD buyers out there who have dealt with the issues I posed, so I'm bumping just to see if someone is out there who can help. A while back there seemed to be thread after thread about buying Ally CDs. Maybe nobody ever did.
If we have data, let’s look at data. If all we have are opinions, let’s go with mine. – Jim Barksdale
Browser
 
Posts: 3228
Joined: Wed Sep 05, 2012 4:54 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby JamesSFO » Mon Dec 31, 2012 5:03 pm

Given that Ally has 24/7/365 phone support how about calling them?

I have non-IRA CDs with Ally so cannot answer your question.
User avatar
JamesSFO
 
Posts: 2180
Joined: Thu Apr 26, 2012 10:16 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby Browser » Mon Dec 31, 2012 5:09 pm

I would call them, except the Ally rep I talked with using Chat was an idiot and I didn't think I'd fare much better calling them and wanted to avoid the frustration. Thought maybe there were a few non-idiot Bogleheads who could answer the questions for me more painlessly. :happy
If we have data, let’s look at data. If all we have are opinions, let’s go with mine. – Jim Barksdale
Browser
 
Posts: 3228
Joined: Wed Sep 05, 2012 4:54 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby JamesSFO » Mon Dec 31, 2012 7:39 pm

Call 'em, I've had very helpful answers at the very least it will be a starting point.
User avatar
JamesSFO
 
Posts: 2180
Joined: Thu Apr 26, 2012 10:16 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby nwffdiver » Mon Dec 31, 2012 8:26 pm

If you do call, let us all know what they said. I too have Ally CD's , but no IRA CD's. I'd be interested to know :happy
nwffdiver
 
Posts: 49
Joined: Mon Oct 01, 2012 9:26 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby jasonwhitman » Mon Dec 31, 2012 8:32 pm

I recently needed to call Ally for a more complex question and I found them to be great - much more savvy than the live chat help.
jasonwhitman
 
Posts: 1
Joined: Mon Dec 31, 2012 8:29 pm

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby mlipps » Mon Dec 31, 2012 10:25 pm

We have IRA CD's with Ally; when I opened it it gave me to option to fund it via a transfer from another account if I'm remembering correctly. I agree though you should call them, the majority of their customer service folks are outstanding.
mlipps
 
Posts: 783
Joined: Thu Jun 21, 2012 9:35 am

Re: Question for Ally Bank IRA CD buyers re: fund transfers

Postby Phineas J. Whoopee » Wed Jan 02, 2013 9:05 pm

Browser wrote:I would call them, except the Ally rep I talked with using Chat was an idiot and I didn't think I'd fare much better calling them and wanted to avoid the frustration. Thought maybe there were a few non-idiot Bogleheads who could answer the questions for me more painlessly. :happy

I don't know Browser. The only way I could find out for you would be to carefully read the information on their website or call and ask. Doing both would be better. But it isn't my question.

PJW
User avatar
Phineas J. Whoopee
 
Posts: 3043
Joined: Sun Dec 18, 2011 6:18 pm


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: Abbey, Leeraar and 44 guests