advice on transferring Synchrony IRA to Vanguard IRA

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piton
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advice on transferring Synchrony IRA to Vanguard IRA

Post by piton »

I want to transfer an IRA account from Synchrony Bank to existing Vanguard IRA. Synchrony does not support ACAT transfers (and non-ACAT can take up to 6 weeks), but a Synchrony CSR said they could do a wire transfer. I thought Vanguard would do it all, but Vanguard directed me to the wire transfer instructions and said that I would need to initiate the transfer from Synchrony to Vanguard.

The form lists that I tell Synchrony whether this is an "asset transfer" or a "rollover". I believe this would be an asset transfer.

Bottom line: I'm curious if anyone has done an IRA wire from Synchrony to Vanguard, or if you have any advice regarding this. It seems simple, but I know that looks can be deceiving!
the_wiki
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by the_wiki »

Are you holding stock or funds at synchrony? Many bank IRA are basically money market so there would just be cash to move either way.
Topic Author
piton
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by piton »

just cash, but I want to avoid a distribution since it's and IRA
Topic Author
piton
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by piton »

I knew it wouldn't be easy! Vanguard says I need to initiate and Synchrony says that Vanguard needs to initiate.
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LadyGeek
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by LadyGeek »

This thread is now in the Personal Investments forum (account transfer).

(Thanks to the member who reported the post and explained what's wrong.)
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stuber
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by stuber »

Hello

Did you ever get a resolution on this? I am having the same issue trying to transfer from synchrony to robin hood.
blueskiesNM
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by blueskiesNM »

me too both side won't budge.
jimkinny
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by jimkinny »

I am going to guess Synchrony would have no problem with you taking a distribution. I have not done this in some time, so review the rules on the IRS website. From my memory we are allowed one TIRA distribution per year and the money has to be then deposited into another TIRA, within 60 days. The one year not a calendar year but 1 year from the last time you rolled over an TIRA in this manner. If done properly, there are no taxes. Check the IRS rules. You could always fill out Vanguard's form and have them pull the money from Synchrony but I guess you know that.
blueskiesNM
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by blueskiesNM »

Vanguard refuses to pull the money out. That is why everyone keeps saying neither side will budge. Synchrony says vanguard has to initiate but Vanguard says the same. It is soooo frustrating.


Has anyone gotten Synchrony to do a direct transfer to Vanguard????
placeholder
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by placeholder »

Try fidelity or another custodian to see if they have better luck with a transfer.
Alan S.
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by Alan S. »

A qualified plan must offer direct rollovers to participants qualified for eligible rollover distributions. Yet there is no restriction on the number of 60 day rollovers that can be done, albeit that mandatory 20% withholding might pose a problem.

Yet there is no requirement for an IRA custodian to offer a direct transfer while the number of indirect rollovers is limited to 1 per 12 months. This contrast with qualified plans makes no sense, yet with all the Secure Act provisions that were passed, this issue for some reason was never addressed.

Therefore, while I have never seen this recommended, this thread would appear to make it imperative that anyone placing an IRA with a custodian other than the few large ones we know, should first get confirmation that the IRA custodian will either cooperate with the pulling IRA custodian or maintain a procedure to push out a direct transfer - or be sure to save the rollover for a situation such as this.

Synchrony is too large a bank to maintain this anti consumer policy and ignore the risks to IRA clients.
blueskiesNM
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by blueskiesNM »

placeholder wrote: Sat Jun 08, 2024 9:59 pm Try fidelity or another custodian to see if they have better luck with a transfer.
too late for those of us who have IRA CDs maturing at Synchrony. Alan S is correct. Check before you put money into IRA CD at a bank....see if they are set up to do a direct transfer at maturity. Synchrony is not.
exodusNH
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by exodusNH »

piton wrote: Thu Mar 21, 2024 1:41 pm I want to transfer an IRA account from Synchrony Bank to existing Vanguard IRA. Synchrony does not support ACAT transfers (and non-ACAT can take up to 6 weeks), but a Synchrony CSR said they could do a wire transfer. I thought Vanguard would do it all, but Vanguard directed me to the wire transfer instructions and said that I would need to initiate the transfer from Synchrony to Vanguard.

The form lists that I tell Synchrony whether this is an "asset transfer" or a "rollover". I believe this would be an asset transfer.

Bottom line: I'm curious if anyone has done an IRA wire from Synchrony to Vanguard, or if you have any advice regarding this. It seems simple, but I know that looks can be deceiving!
If Synchrony doesn't support ACATS, Vanguard cannot pull it. You have to start the wire transfer of cash to Vanguard. Wire transfers can't be done as a pull.

Since this is a Synchrony Bank CD, you'll need to break it, and pay a penalty, or wait for it to mature, and hope they don't automatically reinvest you into a new, terrible CD.
placeholder
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Re: advice on transferring Synchrony IRA to Vanguard IRA

Post by placeholder »

blueskiesNM wrote: Mon Jun 10, 2024 12:04 pm
placeholder wrote: Sat Jun 08, 2024 9:59 pm Try fidelity or another custodian to see if they have better luck with a transfer.
too late for those of us who have IRA CDs maturing at Synchrony. Alan S is correct. Check before you put money into IRA CD at a bank....see if they are set up to do a direct transfer at maturity. Synchrony is not.
Yeah I've seen various reports of bank cd iras having problems so probably necessary to burn the 60 day rollover.
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