Mobile deposit of Rollover Check

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Topic Author
OnLevel
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Joined: Mon Feb 12, 2018 1:14 pm

Mobile deposit of Rollover Check

Post by OnLevel » Sat Jun 23, 2018 7:21 pm

I am about to do a mega backdoor roth rollover for the first time, and it looks like to deposit the checks I receive from my 401k admin in my Schwab accounts, I have to go to the local branch or mail them in: the mobile check deposit in the Schwab app seems to want to treat it as a contribution, which would count against my annual 5,500 limit.

I like Schwab but I'm going to be doing this every 6 weeks or so, so being able to deposit the rollover checks remotely would be awesome. It seems like Vanguard only allows it for traditional IRAs. Do y'all know of any brokerage that would allow me to deposit any rollover check remotely?

Thanks!

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Duckie
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Re: Mobile deposit of Rollover Check

Post by Duckie » Sat Jun 23, 2018 7:56 pm

OnLevel wrote:I am about to do a mega backdoor roth rollover for the first time, and it looks like to deposit the checks I receive from my 401k admin in my Schwab accounts, I have to go to the local branch or mail them in...
What brokerage is the custodian of your 401k? Ask your 401k admin if you opened a Roth IRA at that custodian would the 401k admin be able to move the money electronically since it's the same custodian. Once in the Roth IRA you could easily transfer it to Schwab.

Topic Author
OnLevel
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Re: Mobile deposit of Rollover Check

Post by OnLevel » Sat Jun 23, 2018 8:21 pm

Duckie wrote:
Sat Jun 23, 2018 7:56 pm
OnLevel wrote:I am about to do a mega backdoor roth rollover for the first time, and it looks like to deposit the checks I receive from my 401k admin in my Schwab accounts, I have to go to the local branch or mail them in...
What brokerage is the custodian of your 401k? Ask your 401k admin if you opened a Roth IRA at that custodian would the 401k admin be able to move the money electronically since it's the same custodian. Once in the Roth IRA you could easily transfer it to Schwab.
Unfortunately, we use an in-house custodian (my employer is a very large corporation) so opening a roth IRA with them is not an option.

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Earl Lemongrab
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Re: Mobile deposit of Rollover Check

Post by Earl Lemongrab » Sun Jun 24, 2018 2:30 pm

You say "it looks like". Did you actually call and check on it?

RudyS
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Re: Mobile deposit of Rollover Check

Post by RudyS » Sun Jun 24, 2018 3:27 pm

I must be old. I wouldn't trust a mobile device with this. I don't even like to deposit big checks at an ATM. But, "just because you are paranoid doesn't mean they aren't out to get you!"

livesoft
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Re: Mobile deposit of Rollover Check

Post by livesoft » Sun Jun 24, 2018 3:33 pm

Why not call Schwab and have Schwab mail to you some post-paid envelopes? You will still be depositing checks remotely since your mailbox is located remotely from Schwab's mailbox.
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heartwood
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Re: Mobile deposit of Rollover Check

Post by heartwood » Sun Jun 24, 2018 4:20 pm

OnLevel wrote:
Sat Jun 23, 2018 7:21 pm
I am about to do a mega backdoor roth rollover for the first time, and it looks like to deposit the checks I receive from my 401k admin in my Schwab accounts, I have to go to the local branch or mail them in: the mobile check deposit in the Schwab app seems to want to treat it as a contribution, which would count against my annual 5,500 limit.

I like Schwab but I'm going to be doing this every 6 weeks or so, so being able to deposit the rollover checks remotely would be awesome. It seems like Vanguard only allows it for traditional IRAs. Do y'all know of any brokerage that would allow me to deposit any rollover check remotely?

Thanks!
My guess is that since its a mega rollover that the mobile app may not accept the amount. We've run into the problem with checks to our LLC. On the old platform Vanguard had a $50,000 daily limit for mobile deposit. Mobile deposit went away with the new brokerage platform. My BOA checking has a $10,000 monthly limit. Fidelity is different too. All seem to depend upon the level of assets you have with them.

I'd call them, see about doing a wire transfer, get a mailer, etc.

icefr
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Re: Mobile deposit of Rollover Check

Post by icefr » Mon Jun 25, 2018 12:45 am

I was able to deposit these checks into my Vanguard Roth IRA from my iPhone in 2015 and 2016, if that helps at all.

Topic Author
OnLevel
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Re: Mobile deposit of Rollover Check

Post by OnLevel » Mon Jun 25, 2018 7:41 pm

Earl Lemongrab wrote:
Sun Jun 24, 2018 2:30 pm
You say "it looks like". Did you actually call and check on it?
No, I was basing that on the options that came up when I pulled up the check deposit feature in the app.

Topic Author
OnLevel
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Re: Mobile deposit of Rollover Check

Post by OnLevel » Mon Jun 25, 2018 7:42 pm

RudyS wrote:
Sun Jun 24, 2018 3:27 pm
I must be old. I wouldn't trust a mobile device with this. I don't even like to deposit big checks at an ATM. But, "just because you are paranoid doesn't mean they aren't out to get you!"
Haha, probably wise of you. I really enjoy the convenience of not having to go to a branch, but I guess it's not the end of the world.

Topic Author
OnLevel
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Re: Mobile deposit of Rollover Check

Post by OnLevel » Mon Jun 25, 2018 7:43 pm

livesoft wrote:
Sun Jun 24, 2018 3:33 pm
Why not call Schwab and have Schwab mail to you some post-paid envelopes? You will still be depositing checks remotely since your mailbox is located remotely from Schwab's mailbox.
I didn't know they did this. I will definitely look into it. Thanks!

ryman554
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Re: Mobile deposit of Rollover Check

Post by ryman554 » Tue Jun 26, 2018 8:17 am

OnLevel wrote:
Sat Jun 23, 2018 7:21 pm
I like Schwab but I'm going to be doing this every 6 weeks or so, so being able to deposit the rollover checks remotely would be awesome. It seems like Vanguard only allows it for traditional IRAs. Do y'all know of any brokerage that would allow me to deposit any rollover check remotely?
Thanks!
Simplicity......

1. Instead of twice a quarter, do it twice (or once) a year. I know you want to get it out of the post-tax account quickly to avoid paying unnecessary tax, but I'm sure you have plenty of other things to do.
2. Consider doing an in-plan conversion to your roth 401(k) account instead. No checks to mail, no branches to visit, same tax outcome, as long as you have good investment options in your 401(k). Unless you need to access these funds for some reason, it's much simpler.

Topic Author
OnLevel
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Joined: Mon Feb 12, 2018 1:14 pm

Re: Mobile deposit of Rollover Check

Post by OnLevel » Wed Jun 27, 2018 5:43 am

ryman554 wrote:
Tue Jun 26, 2018 8:17 am
OnLevel wrote:
Sat Jun 23, 2018 7:21 pm
I like Schwab but I'm going to be doing this every 6 weeks or so, so being able to deposit the rollover checks remotely would be awesome. It seems like Vanguard only allows it for traditional IRAs. Do y'all know of any brokerage that would allow me to deposit any rollover check remotely?
Thanks!
Simplicity......

1. Instead of twice a quarter, do it twice (or once) a year. I know you want to get it out of the post-tax account quickly to avoid paying unnecessary tax, but I'm sure you have plenty of other things to do.
2. Consider doing an in-plan conversion to your roth 401(k) account instead. No checks to mail, no branches to visit, same tax outcome, as long as you have good investment options in your 401(k). Unless you need to access these funds for some reason, it's much simpler.
In-plan conversion is not an option, unfortunately.

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Tamarind
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Re: Mobile deposit of Rollover Check

Post by Tamarind » Wed Jun 27, 2018 6:25 am

I hate mailing checks as it feels like my money is "in the ether" far more than with an electronic transfer. But it seems plausible that Schwab or other custodians would not support much less common use cases (rollover check) in their apps.

PhilosophyAndrew
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Re: Mobile deposit of Rollover Check

Post by PhilosophyAndrew » Wed Jun 27, 2018 6:34 am

Tamarind wrote:
Wed Jun 27, 2018 6:25 am
I hate mailing checks as it feels like my money is "in the ether" far more than with an electronic transfer. But it seems plausible that Schwab or other custodians would not support much less common use cases (rollover check) in their apps.
We certainly get used to electronic submission of nearly everything these days. I was a title taken aback when I had to use postal mail to submit forms to Fidelity establishing a solo 401k account, and was surprised that they set up my account and credited my initial deposit the next business day.

Andy.

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Tamarind
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Re: Mobile deposit of Rollover Check

Post by Tamarind » Wed Jun 27, 2018 6:42 am

PhilosophyAndrew wrote:
Wed Jun 27, 2018 6:34 am
Tamarind wrote:
Wed Jun 27, 2018 6:25 am
I hate mailing checks as it feels like my money is "in the ether" far more than with an electronic transfer. But it seems plausible that Schwab or other custodians would not support much less common use cases (rollover check) in their apps.
We certainly get used to electronic submission of nearly everything these days. I was a title taken aback when I had to use postal mail to submit forms to Fidelity establishing a solo 401k account, and was surprised that they set up my account and credited my initial deposit the next business day.

Andy.
I wish.... Changed employers and my 401k rollover money was floating around on a piece of paper for the better part of three weeks between waiting for it to arrive in my mailbox, turning it around to the new custodian, and waiting for the credit to appear in my account. I kept wondering what would happen if the postal sorting facility flooded or burnt down.

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