Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

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passive101
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Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

My last company 401k was a roth, but the company match was traditional. There was 1k that was transferred over to One America traditional IRA. I have been trying to transfer that over to Vanguard. The traditional IRA is already opened there. After 4 weeks of it not going over I called Vanguard and talked with someone. I gave the CSR the info. She called One America to verify the information and get it going. I then waited several weeks later and called back. I talked to a different CSR who verified the information and said this time it should be moving over. It's now been over 3 months total and the money still hasn't been removed from One America or showing up in the Vanguard IRA. The money is in a stable account, but One America is charging me almost $10/month for the account for only 1k dollars!

Should I contact Vanguard again, or should I just open up another traditional IRA with a different company and tell them to move the money. That way whoever takes the money first gets it? :confused
livesoft
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by livesoft »

My spouse has been trying to move her 401(k) money from her last employer for longer than 3 months. The problem is the HR folks at her former company and the financial firm that runs the 401(k). The problem is not where she is transferring the money to. Some examples of problems: The HR people have been replaced, so any forms sent to the previous people are "lost." The company changed its name, so that any forms sent to the custodian are now rejected even though the forms came from the company itself.

OTOH, if the money had been transferred sooner, then it would have been invested right away, so since it is basically sitting in cash, it has not lost any value due to the stock market drop this year.

Your options? Walk into your old company and sit down with the person responsible for authorizing the transfer and get them to call their 401(k) company and get this done while you are sitting there. Not gonna happen. That is, I do not think the delay has much to do with Vanguard though that is also a possibility.
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BitTooAggressive
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by BitTooAggressive »

Maybe your former employer unless you have a check in your hand within a week you will file a complaint with the department of labor?
niagara_guy
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by niagara_guy »

Since it's taken 3 months I would write a letter to all parties (One America and Vanguard) and I would send it certified mail. I would address it to the CEO or president of each firm and I would make it clear that I would not hesitate to contact FINRA and SEC if this is not resolved immediately. I might just copy FINRA and SEC on this letter. Or, you could just go to FINRA and the SEC at this point. 3 months is nuts.

I would ask in the letter to be reimbursed for any money lost (like the $10/month).

I had to deal with a terrible retirement provider, moved the money to Vanguard and will never have to deal with them again.
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retiredjg
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by retiredjg »

I don't think the former employer is involved at all at this point - the money was transferred from the 401k to a traditional IRA.

You keep contacting Vanguard, but the problem may be at One America. Have you contacted them?

Has the Roth 401k been transferred? If so, where?
DrChronzworth
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by DrChronzworth »

Next time you call Vanguard ask the rep to check the comments in "AWD" (Vanguard's internal document processing platfrom) from processing - there may be some hold-up on the OneAmerica side but if there is there may be comments about it in the system. You could also offer to call OneAmerica when you reach a Vanguard rep on the same phone call to iron out what's going on.
Last edited by DrChronzworth on Wed Jul 20, 2022 12:23 pm, edited 1 time in total.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

retiredjg wrote: Wed Jul 20, 2022 8:29 am I don't think the former employer is involved at all at this point - the money was transferred from the 401k to a traditional IRA.

You keep contacting Vanguard, but the problem may be at One America. Have you contacted them?

Has the Roth 401k been transferred? If so, where?
I talked with One America the 2nd time I talked with Vanguard in a 3 way phone call.

The 401k was rolled over into my Vanguard Roth IRA
Big Dog
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by Big Dog »

Contact your (former?) employer to see if they have signed off/released teh funds on their end.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

DrChronzworth wrote: Wed Jul 20, 2022 12:19 pm Next time you call Vanguard ask the rep to check the comments in "AWD" (Vanguard's internal document processing platfrom) from processing - there may be some hold-up on the OneAmerica side but if there is there may be comments about it in the system.
Thanks for this advice. I'm planning on calling them again on Tuesday when I'm off work if it's not moved by then.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

Big Dog wrote: Wed Jul 20, 2022 12:21 pm Contact your (former?) employer to see if they have signed off/released teh funds on their end.
The 401k was already rolled over. I haven't worked there in over a year. I just learned about this account when they mailed me something. Would it still be locked somehow to the company?
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by Big Dog »

passive101 wrote: Wed Jul 20, 2022 12:24 pm
Big Dog wrote: Wed Jul 20, 2022 12:21 pm Contact your (former?) employer to see if they have signed off/released teh funds on their end.
The 401k was already rolled over. I haven't worked there in over a year. I just learned about this account when they mailed me something. Would it still be locked somehow to the company?
In my former life, I had to approve and sign a form for such distributions from former employees.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

Vanguard cancelled the transfer to them for the 2nd time. I got the address for Vanguard to have a check mailed to. Then I found out how they want my name on the check. I went through the One America website and set it up for them to mail a check over to Vanguard.

Does anyone know how long it takes for this process to complete?
busdriver11
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by busdriver11 »

Have you considered that the problem may be from Vanguard? I had been trying to move money, Roth to Roth, from TD Ameritrade to Vanguard, for both me and my husband's account. It supposedly is supposed to take a week. The first time I called, they said it should be there in a few days, the second time, they said that they saw the money, it just hadn't been applied yet. Both agents were telling me BS. Online, it showed that Vanguard had done nothing, and it was still in my TD Ameritrade account. TD Ameritrade said they hadn't even received the request yet. After 12 days, I called Vanguard and told them to cancel the transfer, which they did. Supposedly Fidelity will transfer your money in one day. One day. Consider that maybe Vanguard has some serious problems going on right now, and you should transfer elsewhere. Do you have any other accounts you can transfer to?
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

I have an HSA at Fidelity but my IRA is at Vanguard. I'm certain this is Vanguard's problem. The IRA company told me both times that they have never received anything from Vanguard.

If the check doesn't go through in a timely manner I'll be transferring it to another company. This has been going on for months and this IRA company is charging me $10/month.

I'm definitely disappointed with Vanguard
busdriver11
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by busdriver11 »

That's terrible. Three months? That's insane. If you look at what their policy is, it should take about a week. I think there's something going on at Vanguard. Maybe grossly understaffed? I would definitely call them tomorrow, ask for specifics, tell them this is crazy to take three months. And if you don't get a satisfactory answer, transfer elsewhere.

Here's a strange thing. I transferred 1K cash from my TD Ameritrade Roth to my Vanguard Roth, and it only took a 3-4 days. But when I tried to transfer the entire account, that's when I got the big delay. I don't know what to make of that.

I don't think it would cost anything to open an account at Fidelity. Seems like it would be worth it to just forget about Vanguard.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

busdriver11 wrote: Wed Aug 17, 2022 12:42 am That's terrible. Three months? That's insane. If you look at what their policy is, it should take about a week. I think there's something going on at Vanguard. Maybe grossly understaffed? I would definitely call them tomorrow, ask for specifics, tell them this is crazy to take three months. And if you don't get a satisfactory answer, transfer elsewhere.

Here's a strange thing. I transferred 1K cash from my TD Ameritrade Roth to my Vanguard Roth, and it only took a 3-4 days. But when I tried to transfer the entire account, that's when I got the big delay. I don't know what to make of that.

I don't think it would cost anything to open an account at Fidelity. Seems like it would be worth it to just forget about Vanguard.
Yeah. Now it's been 4 months and it's cost me $40 waiting. This time I'm going directly from the company so I'm hoping that it goes quickly. I verified the address with Vanguard so hopefully everything will go smoothly this time. I'm just a little annoyed. Thankfully it's only a small account. Vanguard has been good for me so far so I'm hoping they are just having some temporary issues.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by placeholder »

I wouldn't have tolerated three weeks but then I'd never move to vanguard these days.
busdriver11
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by busdriver11 »

placeholder wrote: Wed Aug 17, 2022 12:58 am I wouldn't have tolerated three weeks but then I'd never move to vanguard these days.
I'm curious, why? What is going on with them now?
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by celia »

passive101 wrote: Wed Jul 20, 2022 12:24 pm
Big Dog wrote: Wed Jul 20, 2022 12:21 pm Contact your (former?) employer to see if they have signed off/released teh funds on their end.
The 401k was already rolled over. I haven't worked there in over a year. I just learned about this account when they mailed me something. Would it still be locked somehow to the company?
Who is “they”? What did they mail you?

This thread started as a reference to a 401k. But then it was said the 401k was rolled over to a traditional IRA somewhere. Did you ever request such a transfer? Custodians can’t just open an account you didn’t ask for. And if the original money was moved anywhere, you would have had to receive a statement showing the 401K account now has a zero balance as well as a statement for the new Traditional IRA account showing the money was received. Did you receive either of these statements? (This is what would happen in a typical financial transfer.)


However, since you didn’t appear to request a rollover to a Rollover IRA or received notice of the money leaving the 401K, I think I know what happened. I recall something I read a few months ago about a company that might have been One America. That appears to be a “temporary” custodian where employers dump retirement accounts when they’ve lost contact with a former employee. While working and contributing, was One America the company’s 401K custodian? Have you moved to a different address in the last few years without notifying the original custodian?

If “no”, then “yes”, this looks like why your money went there. They don’t appear to be much of a mutual fund custodian since they specialize in life insurance instead. I think I also read that the fees are high, possibly because they end up doing the same work maintaining small accounts as it would take for larger accounts.

Since this is “your” money, basically you need to do the work to clean this up before fees eat up the whole account. Start by calling One America up to confirm they have some assets belonging to you and what employer plan it came from. If everything sounds like from your 401K, ask them how you can roll it over to an account of yours at Vanguard. The goal, first, is to get the money out of their hands. If there is a mix of pre-tax and post-tax in it, don’t worry about that. It is more important to move the money to Vanguard than to maintain the correct tax status on only $1,000. I would also do a transfer that involves mailing a check to you. Then you will know exactly where the money is. Try to have the check made out to your Roth IRA but if they can only made the check out to you, then accept it as an indirect rollover and then get the money into your Roth IRA asap. (You need to tell Vanguard it is a rollover/Roth conversion rather than a new contribution so the transaction can be coded properly, for IRS tracking purposes.)

You also need to know that an indirect rollover can only be done once every 365 days. So don’t do another indirect rollover in the next 365 days! If you’ve done one in the last year, please advise us before beginning.


The rest of you can stop dissing Vangaurd now since I think this is one of those odd situations where OP needs to call a new company to identify himself and clarify what is/isn’t happening. They may not know how to reach the OP.
Last edited by celia on Wed Aug 17, 2022 1:37 am, edited 4 times in total.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by placeholder »

busdriver11 wrote: Wed Aug 17, 2022 1:05 am
placeholder wrote: Wed Aug 17, 2022 12:58 am I wouldn't have tolerated three weeks but then I'd never move to vanguard these days.
I'm curious, why? What is going on with them now?
Serious customer service issues besides I use all etfs so I pick the custodian I want.
mhalley
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by mhalley »

I would give up on the direct rollover to vanguard and do an indirect rollover. You would have to replace the withholding, but that shouldn’t be much on 1 k.

https://success.guideline.com/helpcente ... t-rollover
An indirect rollover, also known as a 60-day rollover, is when your previous retirement provider pays your account funds directly to you via check or electronic transfer for deposit into a personal account.

You are allowed to re-deposit these funds tax-free into another qualified retirement account within 60 days if you want to save those funds toward your retirement and if you want to avoid paying taxes and penalties on them. If you do not re-deposit your funds within 60 days, you may owe income taxes and tax penalties on the full amount of your distribution.

Your previous provider may, however, have withheld mandatory 20% federal income taxes, early withdrawal penalties of 10% (unless you meet certain exemptions), and any applicable state taxes from your distribution. If this has happened, you are responsible for depositing the entire amount, including any taxes withheld, into your new retirement account at Guideline within 60 days of the distribution date to avoid a taxable event.
https://www.thebalance.com/what-is-an-i ... er-5204115
Last edited by mhalley on Wed Aug 17, 2022 1:45 am, edited 2 times in total.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

The money is currently at One America in a traditional IRA. I didn't request to be moved from their 401K but apparently they switched companies and said I didn't have enough money in there. The amount was only $1,000.

My address hasn't changed since I worked there.

I think it has been a full year since I rolled over the Roth part of my 401k into Vanguard. I'm not sure why the traditional part was not rolled over with the rest of it.
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celia
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by celia »

passive101 wrote: Wed Aug 17, 2022 1:43 am The money is currently at One America in a traditional IRA. I didn't request to be moved from their 401K but apparently they switched companies and said I didn't have enough money in there. The amount was only $1,000.
Well, if you rolled the whole 401K to Vanguard, you temporarily had an empty account. When the final employer match came in, the balance was so low, it was a “nuisance” to the 401K custodian. Can you see how the account could be easily forgotten or that it would be an irritant to split it if you had several heirs listed? I think it is common to request past employees to do something with it if under a certain amount. Or the 401K custodian could send these small accounts of inactive employees to One America on a yearly basis.
My address hasn't changed since I worked there.
Thanks for the answer. But was One America the original custodian?
I think it has been a full year since I rolled over the Roth part of my 401k into Vanguard. I'm not sure why the traditional part was not rolled over with the rest of it.
The employer match is often deposited later than the employee contribution. It can even arrive early in the following year. By then, your Roth withdrawal could have been transferred out.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

I'm looking at my old bookmarks and I think it was with One America before I left the company. When I login it still says One America, but at the bottom of the site says IRALogix Inc.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by livesoft »

Since this thread has popped up again, I wanted to update my previous comment: Yesterday my spouses's 401(k) rollover to an IRA was completed and the money used to buy shares. Total time it took was 5.5 months.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

livesoft wrote: Thu Aug 18, 2022 3:34 am Since this thread has popped up again, I wanted to update my previous comment: Yesterday my spouses's 401(k) rollover to an IRA was completed and the money used to buy shares. Total time it took was 5.5 months.
Wow that's a long wait. Did they keep the transfer open the whole time or did it take multiple requests?
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by livesoft »

passive101 wrote: Thu Aug 18, 2022 9:59 am
livesoft wrote: Thu Aug 18, 2022 3:34 am Since this thread has popped up again, I wanted to update my previous comment: Yesterday my spouses's 401(k) rollover to an IRA was completed and the money used to buy shares. Total time it took was 5.5 months.
Wow that's a long wait. Did they keep the transfer open the whole time or did it take multiple requests?
It took multiple re-do's as in "You effed it up, so try again until you get it right. We are not to blame."
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

update

It's now 5 months in. I had the IRA company directly send them a check on their own after having a Vanguard rep on the phone with us and was told exactly what neeeds to be on the check. They confirmed it back with them and send Vanguard the check. The IRA company sent me an email today saying they received the check back from Vanguard stating it was missing the required information. They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.

Can I deposit the check myself using the Vanguard app like depositing a check at my bank?

Should I even continue to use Vanguard? Are they getting better or worse? Any worries they could go under?
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by Faith20879 »

passive101 wrote: Mon Sep 19, 2022 5:51 pm update

It's now 5 months in. I had the IRA company directly send them a check on their own after having a Vanguard rep on the phone with us and was told exactly what neeeds to be on the check. They confirmed it back with them and send Vanguard the check. The IRA company sent me an email today saying they received the check back from Vanguard stating it was missing the required information. They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.

Can I deposit the check myself using the Vanguard app like depositing a check at my bank?

Should I even continue to use Vanguard? Are they getting better or worse? Any worries they could go under?
To minimize the uncertainties of who is sending who of what, I have found that a check to you (FBO'ed properly) and mobile deposit to Vanguard to be the fastest way. I just did a rollover from a workplace plan. Took five days for the check to arrive at my box, 5 minutes to transmit the check to VG, and the fund was available to trade the same day.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

Faith20879 wrote: Mon Sep 19, 2022 6:40 pm
passive101 wrote: Mon Sep 19, 2022 5:51 pm update

It's now 5 months in. I had the IRA company directly send them a check on their own after having a Vanguard rep on the phone with us and was told exactly what neeeds to be on the check. They confirmed it back with them and send Vanguard the check. The IRA company sent me an email today saying they received the check back from Vanguard stating it was missing the required information. They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.

Can I deposit the check myself using the Vanguard app like depositing a check at my bank?

Should I even continue to use Vanguard? Are they getting better or worse? Any worries they could go under?
To minimize the uncertainties of who is sending who of what, I have found that a check to you (FBO'ed properly) and mobile deposit to Vanguard to be the fastest way. I just did a rollover from a workplace plan. Took five days for the check to arrive at my box, 5 minutes to transmit the check to VG, and the fund was available to trade the same day.
It seemed like I was doing absolutely everything Vanguard wanted me to do. In the future if this way works I won't have checks sent to vanguard. It's been almost 1/2 a year this money has been out of the market now.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by retired@50 »

passive101 wrote: Mon Sep 19, 2022 6:43 pm
It seemed like I was doing absolutely everything Vanguard wanted me to do. In the future if this way works I won't have checks sent to vanguard. It's been almost 1/2 a year this money has been out of the market now.
Probably a blessing in disguise, don't you think?

Regards,
This is one person's opinion. Nothing more.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by placeholder »

Some of the custodians allow depositing rollover checks via the app but these days if I needed to do a rollover from the 401k I'd do it to an ira at fidelity since they also manage the plan so you can get that all electronically.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

retired@50 wrote: Mon Sep 19, 2022 7:13 pm
passive101 wrote: Mon Sep 19, 2022 6:43 pm
It seemed like I was doing absolutely everything Vanguard wanted me to do. In the future if this way works I won't have checks sent to vanguard. It's been almost 1/2 a year this money has been out of the market now.
Probably a blessing in disguise, don't you think?

Regards,
That could actually be a benefit actually!
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by KESP »

I just rolled over my money from a 403b at Aspire to my Vanguard IRA. I submitted the form to Aspire on September 12, and the money was in my Vanguard account today, the 19th. Having it take months is insane. Sounds very frustrating. For anyone on this board who is dissatisfied with their company or school’s 403B, I would highly recommend trying to get Aspire as an option. They have been excellent and offer Vanguard, Fidelity, Schwab and many other funds. Only reason why I moved the funds is I’m trying to simplify my life as I age so it will be easier on my children when I am no longer here.
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by Klewles »

passive101 wrote: Mon Sep 19, 2022 5:51 pm They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.
It sounds like they are sending a check made out to you, not Vanguard, so that you can choose any IRA custodian. If so, be careful -- that's a 60-day rollover, not a direct rollover. See the post by mhalley above.
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passive101
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

Klewles wrote: Tue Sep 20, 2022 4:14 am
passive101 wrote: Mon Sep 19, 2022 5:51 pm They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.
It sounds like they are sending a check made out to you, not Vanguard, so that you can choose any IRA custodian. If so, be careful -- that's a 60-day rollover, not a direct rollover. See the post by mhalley above.
So when I get the check I should deposit it right away with vanguard? Or do I put it in my bank and put the money from my checking account into vanguard?
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Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by retiredjg »

passive101 wrote: Tue Sep 20, 2022 4:16 am
Klewles wrote: Tue Sep 20, 2022 4:14 am
passive101 wrote: Mon Sep 19, 2022 5:51 pm They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.
It sounds like they are sending a check made out to you, not Vanguard, so that you can choose any IRA custodian. If so, be careful -- that's a 60-day rollover, not a direct rollover. See the post by mhalley above.
So when I get the check I should deposit it right away with vanguard? Or do I put it in my bank and put the money from my checking account into vanguard?
People have reported doing both of these methods. Since it seems the check will come made out to you, my preference would be to deposit it and mail/transfer the money to IRA along with whatever paperwork Vanguard wants to indicate this is a rollover instead of a contribution. You have 60 days from when you receive the check to get this done.

Before they send you the check, tell them NOT to withhold taxes. If it is too late for that, you will need to "make up" the amount they withheld for taxes in order to put the full amount into your IRA at Vanguard.

Example: the default for withholding is 10%. If they send you a check for $900 instead of $1000, you still need to send $1000 to your IRA. If you send less, the IRS will consider the missing money an early withdrawal from IRA. If you are less than 59.5 years old, there will be a penalty for the early withdrawal.

If the check does come to you made out to Vanguard FBO your IRA ("for the benefit of passive101's IRA"), do not cash it - send it to Vanguard.
Topic Author
passive101
Posts: 221
Joined: Tue May 05, 2020 2:47 pm

Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

retiredjg wrote: Tue Sep 20, 2022 7:25 am
passive101 wrote: Tue Sep 20, 2022 4:16 am
Klewles wrote: Tue Sep 20, 2022 4:14 am
passive101 wrote: Mon Sep 19, 2022 5:51 pm They wanted to know if I just want the check sent to me so I can deposit it with any other company or choose to continue to deal with Vanguard. I replied to have it sent directly to me.
It sounds like they are sending a check made out to you, not Vanguard, so that you can choose any IRA custodian. If so, be careful -- that's a 60-day rollover, not a direct rollover. See the post by mhalley above.
So when I get the check I should deposit it right away with vanguard? Or do I put it in my bank and put the money from my checking account into vanguard?
People have reported doing both of these methods. Since it seems the check will come made out to you, my preference would be to deposit it and mail/transfer the money to IRA along with whatever paperwork Vanguard wants to indicate this is a rollover instead of a contribution. You have 60 days from when you receive the check to get this done.

Before they send you the check, tell them NOT to withhold taxes. If it is too late for that, you will need to "make up" the amount they withheld for taxes in order to put the full amount into your IRA at Vanguard.

Example: the default for withholding is 10%. If they send you a check for $900 instead of $1000, you still need to send $1000 to your IRA. If you send less, the IRS will consider the missing money an early withdrawal from IRA. If you are less than 59.5 years old, there will be a penalty for the early withdrawal.

If the check does come to you made out to Vanguard FBO your IRA ("for the benefit of passive101's IRA"), do not cash it - send it to Vanguard.
They sent me an email asking if I want it sent to me again, so I guess they didn't receive or care about my reply email requesting it. I checked the website and they still have my account at 0.00 for the balance. So I guess the money is just in whatever check they made out to send to Vanguard. Does the time start from when they first took the money out or when I actually receive the check? They made the check to vanguard and removed it from my account on 8/18/22 so that's just over a month ago already :?

I guess this is why so many people don't mess with this stuff :oops:
User avatar
retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by retiredjg »

If they send a check made out to you (not your IRA at Vanguard), the 60 days starts the day you receive the check.

If they send a check to you made out to your IRA at Vanguard FBO (for your benefit), there is no 60 day limit from the IRS but the check is probably only good for a certain number of months.

If they send the check to Vanguard, there is no 60 day limit.
Topic Author
passive101
Posts: 221
Joined: Tue May 05, 2020 2:47 pm

Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by passive101 »

retiredjg wrote: Thu Sep 22, 2022 6:46 am If they send a check made out to you (not your IRA at Vanguard), the 60 days starts the day you receive the check.

If they send a check to you made out to your IRA at Vanguard FBO (for your benefit), there is no 60 day limit from the IRS but the check is probably only good for a certain number of months.

If they send the check to Vanguard, there is no 60 day limit.
Which way does the check have to be for me to deposit it with the vanguard app?
User avatar
retiredjg
Posts: 49201
Joined: Thu Jan 10, 2008 12:56 pm

Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by retiredjg »

Not sure. My guess is it would have to be made out to Vanguard FBO your IRA.

If the check is made out to you, I have heard you can endorse it on the back and send it to Vanguard and they will accept it. I do not know if the app will accept that or not because it involves seeing both the front and the back of the check. Since a photo of the check cannot show the front and back at the same time, the app may not work with that method.

Again, this is a guess.
index007
Posts: 11
Joined: Thu Sep 08, 2022 9:32 pm

Re: Moving money from Company IRA to Vanguard now taking over 3 months. What are my options?

Post by index007 »

I have never used the Vanguard app for deposits. The apps I have used to deposit check will usually let you take pictures of the front and back of the check. I did have to endorse the check before taking the pics.
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