Roll over mailing logistics?

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nptit
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Joined: Sun Mar 29, 2015 5:51 pm

Roll over mailing logistics?

Post by nptit »

Assume you are rolling over after tax 401k contributions to a roth IRA. Fiduciary A sends a check to you and then you have to send the check to fiduciary B. Note I asked fiduciary A if they will send it directly to B and they will not only to me. How does one secure/ensure nothing happens to the letter/check when you mail it? I am not familiar with physical mail would you get some sort of insurance? How does mail insurance work and how much would it be/cover in this situation? Frankly, I am concerned with mailing checks worth so much. The headache if something happened would be immense. Thanks.
BeneIRA
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Re: Roll over mailing logistics?

Post by BeneIRA »

I work in HR, we exclusively mail checks to participants for rollovers because it makes everything so much simpler. We mail checks worth well over $1 million and we have problems far less than 1 percent of the time. If the check is lost, your HR will be more than happy to stop pay reissue it for you, usually after 10 days have passed to allow for mailing timing. Since the check is a direct rollover, it is made payable to the institution for your benefit, there is no risk of it becoming payable to you. Occasionally, someone offers to Fedex it to themselves at their expense, but it doesn't make sense because seriously, the checks almost always make it to where they are supposed to and if it does get lost, it's not a big deal.
Lafder
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Re: Roll over mailing logistics?

Post by Lafder »

Yes it is unnerving ! But that is what most require. The most annoying to me was the delay in the mail to me, then to Vanguard since I knew it would be easy to cancel the check and issue a new one.

One time the check was sent to my husband's old work address and it took days to find it. Duh !

It will be fine!

If you feel better, you can mail your check certified or return receipt requested for under 10$ so you can have confirmation of if/when it was received.

lafder
dolphinsaremammals
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Re: Roll over mailing logistics?

Post by dolphinsaremammals »

nptit wrote:Assume you are rolling over after tax 401k contributions to a roth IRA. Fiduciary A sends a check to you and then you have to send the check to fiduciary B. Note I asked fiduciary A if they will send it directly to B and they will not only to me. How does one secure/ensure nothing happens to the letter/check when you mail it?
You can't. If it doesn't show up at B in a week or two, call A and have them stop payment and send you another one. There may be a charge for this.

I did several trustee to trustee transfers of maturing IRA CDs last month (directly between financial institutions). One check went into the ether, so I had to do this. Lost mail is quite rare, however.
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LadyGeek
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Re: Roll over mailing logistics?

Post by LadyGeek »

BeneIRA wrote:... If the check is lost, your HR will be more than happy to stop pay reissue it for you, usually after 10 days have passed to allow for mailing timing. Since the check is a direct rollover, it is made payable to the institution for your benefit, there is no risk of it becoming payable to you. Occasionally, someone offers to Fedex it to themselves at their expense, but it doesn't make sense because seriously, the checks almost always make it to where they are supposed to and if it does get lost, it's not a big deal.
When I was with Ameriprise, my husband's bank IRA CD matured. He had the check mailed to the Ameriprise address specified by our advisor. Or so we thought. They never got the check.

That's when I found out about the 90 day rule for lost cashier's checks. You can't issue a stop payment. His IRA balance was vaporware for 90 days, as the bank balance was zero - so was the Ameriprise account. Eventually, they reissued the check.

See: Lost or Stolen Cashier's Check? No Longer Need It?

Also: § 3-312. Lost, Destroyed, Or Stolen Cashier's Check, Teller's Check, Or Certified Check
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BeneIRA
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Re: Roll over mailing logistics?

Post by BeneIRA »

Wow, that does sound like quite a headache to get that Cashier's Check reissued. In my experience, I have only dealt with personal checks sent for rollovers for all of the clients I have worked for, so it is very easy to check with the issuing Trust, see that the check is still outstanding, then reissue a new one.
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LadyGeek
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Re: Roll over mailing logistics?

Post by LadyGeek »

Yes, that was quite an emotional roller coaster. We knew that the funds where there, but the wait was excruciating. That was the initial kick to start looking outside Ameriprise and then I found this forum. However, that's another story.

The difference here is that the OP is working with a company check (I think), which is not a cashier's / teller's / certified check. However, it's something to check on (pun intended).
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