What is the best way to send the direct rollover check to Vanguard?
What is the best way to send the direct rollover check to Vanguard?
TRP refused to send the 401k rollover check directly to vanguard. They said my employer plan does not allow that. They will send me the check instead and then I will have to send it to Vanguard. I requested TRP to send me the check overnight and they charged me $30. I am expecting to receive it on Monday or Tuesday.
I heard that Vanguard has mobile check feature on their mobile app but I don't see that feature on my app. My vanguard rollover IRA has a brokerage account and settlement account attached to it because I remember they did a system upgrade to convert all mutual funds account to brokerage accounts last year. Their website says that the mobile check feature is only available if the rollover IRA is not in a brokerage account.
If I don't have the mobile check feature, then what is the best way to send it to Vanguard? I want to buy VTSAX as soon as possible. I hate to be outside the market during this rollover process.
If I send the check on Tuesday, I want to be in VTSAX on Thursday at least. Is that possible?
I heard that Vanguard has mobile check feature on their mobile app but I don't see that feature on my app. My vanguard rollover IRA has a brokerage account and settlement account attached to it because I remember they did a system upgrade to convert all mutual funds account to brokerage accounts last year. Their website says that the mobile check feature is only available if the rollover IRA is not in a brokerage account.
If I don't have the mobile check feature, then what is the best way to send it to Vanguard? I want to buy VTSAX as soon as possible. I hate to be outside the market during this rollover process.
If I send the check on Tuesday, I want to be in VTSAX on Thursday at least. Is that possible?
Re: What is the best way to send the direct rollover check to Vanguard?
If you use express mail at the PO it normally gets there overnight in the USA.
Edited to add:
You can get the overnight stamp/envelope in advance and drop it in an early pick-up postal box.My experience is that you get no value for waiting in line and handing it over the counter at the post office for a receipt. You can probably even print the postage and mailing label from home and pay by credit card at usps.com. As soon as the envelope hits the sorting mechanism at the PO it gets scanned and tracked by the bar code.
Edited to add:
You can get the overnight stamp/envelope in advance and drop it in an early pick-up postal box.My experience is that you get no value for waiting in line and handing it over the counter at the post office for a receipt. You can probably even print the postage and mailing label from home and pay by credit card at usps.com. As soon as the envelope hits the sorting mechanism at the PO it gets scanned and tracked by the bar code.
Last edited by 123 on Sat Jul 30, 2016 7:27 pm, edited 3 times in total.
The closest helping hand is at the end of your own arm.
Re: What is the best way to send the direct rollover check to Vanguard?
Does Vanguard deposit the money as soon as they receive the check?123 wrote:If you use express mail at the PO it normally gets there overnight in the USA.
Re: What is the best way to send the direct rollover check to Vanguard?
That sounds funny. Did TRP issue the check to VG? Send the check via registered mail. I don't think VG deposits the check immediately all the time. Read too many posts on that problem.TRP refused to send the 401k rollover check directly to vanguard. They said my employer plan does not allow that.
Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Re: What is the best way to send the direct rollover check to Vanguard?
I am not sure Vanguard is speedy at check deposit. Last time I sent a check (a few years ago), it took much longer than expected, IIRC two weeks.
Re: What is the best way to send the direct rollover check to Vanguard?
All anyone can do is send it to Vanguard and hope for the best. There are a number of check processing services used today to protect issuers against fraudulent checks. Many of these services operate at the bank-to-bank level that is unknown to the consumer. Lots of things can happen depending on whether the "check" is a check, bank draft, or cashier's check.
The closest helping hand is at the end of your own arm.
Re: What is the best way to send the direct rollover check to Vanguard?
I haven't tried the Fedex Overnight, but that may also be an option.
Have patience!
Have patience!
Re: What is the best way to send the direct rollover check to Vanguard?
I would want a delivery method that prioritizes security of transmission rather than worrying about speed. Therefore, I wouldn't worry about the check being in your chosen mutual fund by Thursday, I would want to have a "paper" trail of delivery. I think one of the overnight systems (USPS or Fedex) would work. How quickly Vanguard processes the check is another matter. I would assume this is a large check and Vanguard is likely to have a procedure for this (even if drawn on a TRP account).
Re: What is the best way to send the direct rollover check to Vanguard?
Hi,
Last week I mailed a rollover check to Vanguard via priority mail with signature confirmation. They received it in the morning, and it was credited to my account that afternoon.
Last week I mailed a rollover check to Vanguard via priority mail with signature confirmation. They received it in the morning, and it was credited to my account that afternoon.
- dodecahedron
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Re: What is the best way to send the direct rollover check to Vanguard?
Talk to the "concierge" for incoming transfers at Vanguard. When I was in a similar situation, they overnighted me an overnight envelope for me to return to them with paperwork properly addressed to the attention of the concierge and shipping cost charged to to Vanguard and they enclosed the appropriate accompanying forms already filled out, with little sticky arrows showing me where to sign. I signed, enclosed the check, sealed it up, and dropped it in a FedEx box, keeping my copy of the shipping form for tracking purposes.
Re: What is the best way to send the direct rollover check to Vanguard?
This is the EXACT same situation I am currently in. Literally: with TRP, and within the last week. It's extra stupid since I only hold Vanguard funds within the TRP 401k...algorithm wrote:TRP refused to send the 401k rollover check directly to vanguard. They said my employer plan does not allow that. They will send me the check instead and then I will have to send it to Vanguard. I requested TRP to send me the check overnight and they charged me $30. I am expecting to receive it on Monday or Tuesday.
I heard that Vanguard has mobile check feature on their mobile app but I don't see that feature on my app. My vanguard rollover IRA has a brokerage account and settlement account attached to it because I remember they did a system upgrade to convert all mutual funds account to brokerage accounts last year. Their website says that the mobile check feature is only available if the rollover IRA is not in a brokerage account.
If I don't have the mobile check feature, then what is the best way to send it to Vanguard? I want to buy VTSAX as soon as possible. I hate to be outside the market during this rollover process.
If I send the check on Tuesday, I want to be in VTSAX on Thursday at least. Is that possible?
I hadn't heard of the mobile check feature with Vanguard. I was instructed by Vanguard to send it to the following address (note: this address is for courier or certified mail only. Traditional USPS has to go to a different address, I was told):
Vanguard Group
455 Devon Park Dr
Wayne PA
19087
I was also told to send in a brief note saying that the checks were a rollover (ie. not a new contribution), and designating which account to put it into (I have a roth 401k with a traditional employer match... and so they go into Roth IRA and traditional IRA, respectively), and to sign the checks and say "payable to vanguard". I would call in just to make sure that these instructions are applicable to you as well.
In my case, my potential "time out of the market" would have been even greater, since I moved to the UK and TRP is literally sending me my checks accross the Atlantic so that I can mail them right back accross again to Vanguard, which I expect to take probably 2-3 weeks in total. However, I'm at least a bit fortunate in that I've been DCA'ing in a large sum over a 6-month period (to which I'm 3 months in). Since I have the spare cash, I simply bought equivalent funds on the same day TRP sold my investments.
I feel like the check might take a few days to clear with Vanguard, but I'm not sure. I'd call/ask vanguard.
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Re: What is the best way to send the direct rollover check to Vanguard?
I did this only a week ago. The check was in my hand from my 401K direct rollover. I mailed it (USPS first class) on Friday (a week ago)...no special postage or anything... and to my surprise Vanguard received it and placed the order on the following Monday. I got an email late that evening.
Re: What is the best way to send the direct rollover check to Vanguard?
It may go a little faster if you predetermine with the Vanguard rep what fund(s) you want to be in so they put the money directly into those funds instead of the settlement account. I did not and IIRC, I was able to buy into mutual funds a day or two after Vanguard received the checks and maybe within a week for ETF's.
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Re: What is the best way to send the direct rollover check to Vanguard?
I think that's a good suggestion to give Vanguard advance instructions on what funds to purchase with the check.
I just completed a rollover with the check sent from the 401k provider - I called Vanguard in advance with instructions on how to allocate the rollover amount among 4 different funds within my IRA account. I don't know when the check was received by Vanguard - it was sent on Friday and was supposed to take 7-10 business days - by the following Friday Vanguard sent me notice of the purchase transaction for the 4 different funds exactly as I had requested. So very quick.
I just completed a rollover with the check sent from the 401k provider - I called Vanguard in advance with instructions on how to allocate the rollover amount among 4 different funds within my IRA account. I don't know when the check was received by Vanguard - it was sent on Friday and was supposed to take 7-10 business days - by the following Friday Vanguard sent me notice of the purchase transaction for the 4 different funds exactly as I had requested. So very quick.
Re: What is the best way to send the direct rollover check to Vanguard?
Vanguard is supposed to process all requests the same day they are received in the mail. If, for some reason, there is an avalanche of mail one day or many employees are sick, when they process it, they will still give you the day-of-receipt price.Geologist wrote:How quickly Vanguard processes the check is another matter.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
Re: What is the best way to send the direct rollover check to Vanguard?
On several occasions I’ve forwarded a 401k partial rollover check to Vanguard via first class mail enclosing their form R712 detailing the transaction. Don’t recall it ever taking more than two or three days to appear in my account.
Re: What is the best way to send the direct rollover check to Vanguard?
I'm a big fan of USPS flat rate envelope for ~$6.50. Second day air, and a tracking number.
Re: What is the best way to send the direct rollover check to Vanguard?
My proceeds from my 457b came via standard mail years ago. So I sent to Vanguard the same way without problems. Today I would send it via registered mail without return receipt..
SeeMoe..
SeeMoe..
"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}
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Re: What is the best way to send the direct rollover check to Vanguard?
Probably certified mail is what is needed, less expensive than registered which is for valuables, like jewellery and the likes.SeeMoe wrote:My proceeds from my 457b came via standard mail years ago. So I sent to Vanguard the same way without problems. Today I would send it via registered mail without return receipt..
SeeMoe..
I actually just put a first class stamp on it and call it a day
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells
Re: What is the best way to send the direct rollover check to Vanguard?
Mobile check is not currently available if its a brokerage account. They didn't tell me that until after my "upgrade." Supposed to be back late in the year ... It was a great feature. Now I mobile deposit to BOA and EFT to Vanguard. But that probably won't work for a rollover check unless its made out to you in the name you use on the local bank account.algorithm wrote: I heard that Vanguard has mobile check feature on their mobile app but I don't see that feature on my app. My vanguard rollover IRA has a brokerage account and settlement account attached to it because I remember they did a system upgrade to convert all mutual funds account to brokerage accounts last year. Their website says that the mobile check feature is only available if the rollover IRA is not in a brokerage account.
If I don't have the mobile check feature, then what is the best way to send it to Vanguard? I want to buy VTSAX as soon as possible. I hate to be outside the market during this rollover process.
BTW, just curious, is it in fact a "direct" rollover? Going to you instead of a direct transfer from TRP to Vanguard seems odd. No taxes withheld for the 60 day window?
- Earl Lemongrab
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Re: What is the best way to send the direct rollover check to Vanguard?
That's the way my company plan works. Any distributions, even for direct rollovers, are sent to the address of the employee. That's an additional security feature.pkcrafter wrote:That sounds funny. Did TRP issue the check to VG?TRP refused to send the 401k rollover check directly to vanguard. They said my employer plan does not allow that.
Earl
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Re: What is the best way to send the direct rollover check to Vanguard?
Yup. This is pretty typical. Just did this with spouse's former 401k. They wrote a check to Vanguard but mailed the check to our house. I wrote the account # on the check, popped it in an envelope, and sent it to Vanguard. From the day I mailed it to when it was deposited it was about 8 days. They gave me a separate address for overnight if I remember correctly, but I was in no hurry. Oddly my addresses were in a different place than the one given above, not sure why that is.Earl Lemongrab wrote:That's the way my company plan works. Any distributions, even for direct rollovers, are sent to the address of the employee. That's an additional security feature.pkcrafter wrote:That sounds funny. Did TRP issue the check to VG?TRP refused to send the 401k rollover check directly to vanguard. They said my employer plan does not allow that.
Earl
Where the tides of fortune take us, no man can know.
Re: What is the best way to send the direct rollover check to Vanguard?
Thanks Earl and Engineer, I hope the OPs process went the way yours did.
Paul
Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Re: What is the best way to send the direct rollover check to Vanguard?
You are right! Certified mail without receipt. I misspoke.TheGreyingDuke wrote:Probably certified mail is what is needed, less expensive than registered which is for valuables, like jewellery and the likes.SeeMoe wrote:My proceeds from my 457b came via standard mail years ago. So I sent to Vanguard the same way without problems. Today I would send it via registered mail without return receipt..
SeeMoe..
I actually just put a first class stamp on it and call it a day
SeeMoe..
"By gnawing through a dike, even a Rat can destroy a nation ." {Edmund Burke}
Re: What is the best way to send the direct rollover check to Vanguard?
I sent the check via fedex and fedex website shows it was received and signed on Thursday morning. I called Vangaurd today and they said they dont have any record of my check..
Does that mean they lost my check?? or is it to early to worry?
Does that mean they lost my check?? or is it to early to worry?
Re: What is the best way to send the direct rollover check to Vanguard?
It's too early to worry. We're at the close of business at the end of the week. Nothing will happen until Monday.
Good timing, as I'm in the same boat. I just changed employers and requested my 401(k) provider to close out the account and transfer direct to Vanguard. Nope, I'm getting a check.
The good news is that there's no charge for terminating the 401(k) to transfer funds elsewhere.
Since I did the transaction 3 minutes after the stock market closed today, nothing will happen until Monday. The check will get mailed Wednesday, expect the check 5 - 7 days after that. Then, I'll mail the check to Vanguard.
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Backing up a few steps, the first thing I did was go to the Vanguard site and complete the online form at: How to transfer your IRA to Vanguard
I downloaded a PDF letter which not only provided clear instructions, but gave an account number for the IRA. The check needs to be made out to "Vanguard Fiduciary Trust Company, Custodian of LadyGeek". The mailing address is also provided in the letter.
Then, I called my 401(k) provider to initiate the transfer. Hang on, I needed to have a notarized spousal waiver due to money left in some old fund. Done. One week later, I called them again. They got the waiver and we did everything over the phone. Having the Vanguard info in front of me helped make this a smooth process.
Good timing, as I'm in the same boat. I just changed employers and requested my 401(k) provider to close out the account and transfer direct to Vanguard. Nope, I'm getting a check.
The good news is that there's no charge for terminating the 401(k) to transfer funds elsewhere.
Since I did the transaction 3 minutes after the stock market closed today, nothing will happen until Monday. The check will get mailed Wednesday, expect the check 5 - 7 days after that. Then, I'll mail the check to Vanguard.
=================
Backing up a few steps, the first thing I did was go to the Vanguard site and complete the online form at: How to transfer your IRA to Vanguard
I downloaded a PDF letter which not only provided clear instructions, but gave an account number for the IRA. The check needs to be made out to "Vanguard Fiduciary Trust Company, Custodian of LadyGeek". The mailing address is also provided in the letter.
Then, I called my 401(k) provider to initiate the transfer. Hang on, I needed to have a notarized spousal waiver due to money left in some old fund. Done. One week later, I called them again. They got the waiver and we did everything over the phone. Having the Vanguard info in front of me helped make this a smooth process.
Re: What is the best way to send the direct rollover check to Vanguard?
I would call Vanguard and ask the best way to deliver the check.
I have found them to be very helpful.
I have found them to be very helpful.
Re: What is the best way to send the direct rollover check to Vanguard?
Did Vanguard find your check? I just got the distribution checks from my former employer in the mail today.algorithm wrote:I sent the check via fedex and fedex website shows it was received and signed on Thursday morning. I called Vangaurd today and they said they dont have any record of my check..
Does that mean they lost my check?? or is it to early to worry?
I actually had two separate accounts, each with nondeductible contributions.* So, they cut 4 checks. Two for me, two for Vanguard.
The Vanguard checks are made out to Vanguard Fiduciary Trust Company F/B/O LadyGeek. (F/B/O = For the Benefit Of, the same as "Custodian for") Since the checks are made out to Vanguard, this is a direct rollover.
Did they put the account number on the check as Vanguard wanted? Nope. However, the check was attached to a summary sheet with all the information Vanguard needs (including the account number). I wrote a clear instruction letter and sent everything in a standard envelope to Vanguard via normal US Snail Mail, 1 stamp.
My prior employer's 401(k) account value is $00.00. My new Vanguard rollover IRA account is $00.00. Am I worried? Worst case, I'll have to wait 90 days. Again. It happened to me in 2008 401(k) Rollovers are an Absolute Nightmare.
=======================
* Chalk this up to a dumb mistake - I told my plan provider to distribute the nondeductible contributions to me. Instead, I should have told them to roll them over into my new employer's 401(k) plan.
The nice part about nondeductible contributions in a 401(k) plan is that the employer keeps track of the contributions. I don't have to worry about IRS Form 8606, which is why I didn't want this money in my traditional IRA. It's a small percentage of my portfolio, so I have some freedom to do this. I'll be making nondeductible contributions to my new employer's 401(k) when I can.
Re: What is the best way to send the direct rollover check to Vanguard?
Vanguard processed my check. It took about 4 days to process it. The trade date is the date they received the check. The customer services was really good. No complanit at all.
Send the the check with the instuctions to tell them what fund you want to purchase. I sent them the check, the instruction letter and the letter that has all info that vanguard needs. Send the check via certified mail
Send the the check with the instuctions to tell them what fund you want to purchase. I sent them the check, the instruction letter and the letter that has all info that vanguard needs. Send the check via certified mail
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Re: What is the best way to send the direct rollover check to Vanguard?
Isn't it true that that when such a check is issued to an individual that the taxes are taken out and then have to recover that money sometime later after proof of rollover within 60 days?
- Earl Lemongrab
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Re: What is the best way to send the direct rollover check to Vanguard?
Not exactly. If the check is made out to the individual, then that is the case. But if the check is made out to the custodian and sent to the account holder, then that is a direct rollover and no withholding is performed. That's how my 401(k) does it.Shallowpockets wrote:Isn't it true that that when such a check is issued to an individual that the taxes are taken out and then have to recover that money sometime later after proof of rollover within 60 days?
Earl
Re: What is the best way to send the direct rollover check to Vanguard?
I recently rolled over qualified plan money to Vanguard. I had a Traditional IRA at Vanguard and selected BUY. On the next step I was asked if it was a Rollover. I said yes and printed a form that I could send with the check that was a direct rollover made out to Vanguard. This only works if you have a current Traditional Account and it gives them a nice form to complete the rollover.
Re: What is the best way to send the direct rollover check to Vanguard?
Vanguard has received my checks. I received an email notification:
"Notice of transaction submission"
From: Check
To: Settlement fund
The cash value is there, but not yet available for withdrawal. Once the checks clear, I'll move the money into the funds I want.
For new investors, Vanguard has a good tutorial: How to use your Vanguard accounts
Under Managing, click on the Settlement fund drop-down for information on how to use the fund.
"Notice of transaction submission"
From: Check
To: Settlement fund
The cash value is there, but not yet available for withdrawal. Once the checks clear, I'll move the money into the funds I want.
For new investors, Vanguard has a good tutorial: How to use your Vanguard accounts
Under Managing, click on the Settlement fund drop-down for information on how to use the fund.
A settlement fund is a money market fund that's used to pay for and receive proceeds from brokerage transactions.
Re: What is the best way to send the direct rollover check to Vanguard?
I'm in the process of rolling over my workplace 401k as well.
I'm also receiving a paper check (so dumb), which is being mailed to me in Honolulu so I can turn it around back to VG.
I am curious if there is a consensus on whether I should indicate the fund to which the money should be invested? I'm probably going to say Prime money market anyways, so if it's earmarked as a default to the federal mm settlement fund, that's fine with me. (It's a brokerage IRA)
Thanks, all, for the timely posts.
I'm also receiving a paper check (so dumb), which is being mailed to me in Honolulu so I can turn it around back to VG.
I am curious if there is a consensus on whether I should indicate the fund to which the money should be invested? I'm probably going to say Prime money market anyways, so if it's earmarked as a default to the federal mm settlement fund, that's fine with me. (It's a brokerage IRA)
Thanks, all, for the timely posts.
"By singing in harmony from the same page of the same investing hymnal, the Diehards drown out market noise." |
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--Jason Zweig, quoted in The Bogleheads' Guide to Investing
Re: What is the best way to send the direct rollover check to Vanguard?
This is a curious feature of rollovers from some 401k plans - not just TRP. I forget the exact wording as I did my direct rollover a long time ago, but I believe the check is addressed to the new custodian FBO the plan participant. With the correct wording, the check can only be deposited in the new rollover IRA so it counts as a direct rollover and no taxes are owed.heartwood wrote: BTW, just curious, is it in fact a "direct" rollover? Going to you instead of a direct transfer from TRP to Vanguard seems odd. No taxes withheld for the 60 day window?
Re: What is the best way to send the direct rollover check to Vanguard?
Vanguard does have a different address for overnight delivery items. Perhaps they prioritize shipments to this address?
Sincerely,
gasdoc
Sincerely,
gasdoc