Fidelity is making it hard for my daughter to fund a Roth

[dratkinson]

On the topic of the CU CO-OP shared branch network. Assume any CU that is not your's is a "foreign" CU.

...
I've never tried to contribute to an IRA at my CU from a remote CU CO-OP shared branch location, but it can't hurt to ask if it can be done.
...

It's been a long time and I'd forgotten what can be done using the CU CO-OP shared branch network.

So being curious, I called MY CU today to see what can be done to access MY CU accounts from a foreign CU location. I was told...
--I can access any of my EXISTING accounts at MY CU from a foreign CU location.
--I can NOT open any new accounts at MY CU from a foreign CU location.

So your daughter would not have been able to use a local/foreign CU to open a Roth IRA savings account at HER CU.


Option, if more convenient to do so.... But now that she has a Roth IRA savings account at HER CU, she should be able to use a local/foreign CU to make contributions to it for 2019. (And then use the money in HER CU Roth IRA savings account to buy additional equity shares in her Fidelity Roth IRA.)


So for day-to-day convenience, she should be able to use a local/foreign CU that is part of the CU CO-OP shared branch network, as if it were a local branch of HER CU.



Disclosure. When I've traveled and gotten cash from a foreign CU, their security procedures bordered on the annoying when they required me to prove my identity before letting me get cash from MY CU. I suppose that is understandable.

(Added) I remember being so annoyed once by all of the identification I was required to produce before withdrawing MY money, that I asked if an identity thief would be required to produce just as much information... and was told, "No, because it's not his account."

So the first few times your daughter accesses HER CU accounts from a local/foreign CU, she should expect something similar and to answer many questions to prove her identity, before access is granted.

[Mursili]

But now the issue is I have only 1 day to fund it. Eft likely won't work. Will probably have to be wire transfer.

The IRA contribution can be made by check via mobile deposit using the Fidelity app. Just did this today and the contribution showed up immediately in the IRA account.

We tried this approach, but it is blocked by Fidelity until her identity has been verified appropriately. This is the crux of the problem.

[Mursili]

So the first few times your daughter accesses HER CU accounts from a local/foreign CU, she should expect something similar and to answer many questions to prove her identity, before access is granted.

It is now very clear to me that I should not expect to quickly open an account with a new institution unless I can appear before them to verify my identity. Maybe such a thing can happen, I just will not expect it to.

[Mursili]

As an addendum...

We have failed. Even though we tried though Fidelity and then through the credit union that my daughter had account with.... After hours on the phone.... After seeing the transaction moving the funds from the checking account to the Roth IRA.... We noticed a secure message today that said "it is 2:30pm on Monday.... There is an issue. Call us by 4:00pm which is the deadline...." We now see the transactions, including the move of the funds from the Roth IRA back to her checking account.

We are busy people who do not have the time to pay attention to such matters on a real-time basis. This has been a real learning experience.

Even though I have been a customer with this credit union since 1979, I will likely work to move all of my funds from them immediately. I am also going to talk to my wife and daughter about doing the same. I guess that Fidelity was not so bad even though they, also, did not allow us to fund my daughter's Roth for 2018.

I am curious about what they are going to say when my daughter calls them about this tomorrow.

[dogagility]

Bummer it didn't go through for 2018. Hope your daughter keeps at it... perhaps open/fund her 2019 IRA now... one year should be plenty of time.

[Mursili]

Bummer it didn't go through for 2018. Hope your daughter keeps at it... perhaps open/fund her 2019 IRA now... one year should be plenty of time.

The issue with funding for 2019 is to be sure that she earns income. This fall she will be entering college and I would prefer that she focus on that and less on working. She is working right now, but I wonder if this employer is going to even provide a W2. She is looking for another job.

Still, it is just a year although if you look at the numbers over 50 years it really matters.