IRA Rollover Question

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Topic Author
larmewar
Posts: 372
Joined: Sat Mar 03, 2007 6:45 pm

IRA Rollover Question

Post by larmewar »

I'll be rolling over part of credit union IRA CD in January, proceeds going through me. Rollovers are limited to on per 12 months. So can I split the rollover and send part to Dodge and Cox and part to Vanguard?

Lar
Laura
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Joined: Mon Feb 19, 2007 6:40 pm

Re: IRA Rollover Question

Post by Laura »

Why have the proceeds go through you? When the money comes out of the CD in the IRA just have the money stay in the IRA and not come directly to you. Then have the trustee send some to Dodge and Cox and the rest to Vanguard. That solves the one per year rule. Alternatively, do a trustee to trustee rollover to a money market account at Vanguard then divide again from there if the bank can't do that for some reason. You may even be able to invest in Dodge and Cox directly through Vanguard and not need to transfer the money to Vanguard. You should check to see if you would incur any fees for this but if your account is large enough there may be no charge.

Laura
The views presented are my own and not necessarily those of the Department of State or the U.S. Government.
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GerryL
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Joined: Fri Sep 20, 2013 11:40 pm

Re: IRA Rollover Question

Post by GerryL »

Laura wrote:Why have the proceeds go through you? When the money comes out of the CD in the IRA just have the money stay in the IRA and not come directly to you. Then have the trustee send some to Dodge and Cox and the rest to Vanguard. That solves the one per year rule. Alternatively, do a trustee to trustee rollover to a money market account at Vanguard then divide again from there if the bank can't do that for some reason. You may even be able to invest in Dodge and Cox directly through Vanguard and not need to transfer the money to Vanguard. You should check to see if you would incur any fees for this but if your account is large enough there may be no charge.

Laura
Note that Dodge and Cox is not included among the outside funds in Vanguard that are free of transaction fees.
Topic Author
larmewar
Posts: 372
Joined: Sat Mar 03, 2007 6:45 pm

Re: IRA Rollover Question

Post by larmewar »

I want to split the rollover between D&C and Vanguard. The D&C IRA has a bank as custodian, don't remember which one off-hand. So say I take $1,000 from credit union IRA to me. I then send $500 to Vanguard IRA and $500 to D&C IRA (technically to the custodian) to rollover the funds. Then is that counted as one rollover from the credit union or as two rollovers because I'm sending to two different IRAs.

I don't trust this type of transaction to go correctly as trustee to trustee.

Lar
Alan S.
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Location: Prescott, AZ

Re: IRA Rollover Question

Post by Alan S. »

larmewar wrote:I want to split the rollover between D&C and Vanguard. The D&C IRA has a bank as custodian, don't remember which one off-hand. So say I take $1,000 from credit union IRA to me. I then send $500 to Vanguard IRA and $500 to D&C IRA (technically to the custodian) to rollover the funds. Then is that counted as one rollover from the credit union or as two rollovers because I'm sending to two different IRAs.

I don't trust this type of transaction to go correctly as trustee to trustee.

Lar
One rollover because it was only one distribution. Conversely by the same measure, if you took two distributions and rolled them into the same IRA at the same time, that would be two rollovers and therefore not allowed.

Be careful in exhausting the one indirect rollover you have because you will not be able to do another one for 12 months from the date of the last distribution (taken in 2015 or later). Best to save it for truly unavoidable situations.
Topic Author
larmewar
Posts: 372
Joined: Sat Mar 03, 2007 6:45 pm

Re: IRA Rollover Question

Post by larmewar »

Alan,

Thanks. For the one rollover within 12 months, are TIRA and Roth rollovers counted together or separately?

Lar
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