Transfer From Synchrony(IRA) To Vanguard(IRA)

12string | Mar 23, 2024 | 3 posts since 2024

This thread was very helpful, more info than I have seen anywhere else!

https://www.depositaccounts.com/community/ask/17186-handling-ira-cd-distributions-rollover-trustee-trustee-transfer.html

But just for clarification, I want to transfer a cash IRA at Synchrony to my Vanguard IRA:

Since Synchrony does not support ACATS, one way to transfer an IRA to Vanguard would be with a non-ACATS transfer which according to Vanguard could take 4 to 6 weeks. Does that sound correct?

I tried to have the IRA wired, but Vanguard refuses to initiate that transfer and says that I have to initiate it. From the thread that I read (above), it sounds like that's because a wire will be a distribution. I don't understand why that's the case, but that's how Synchrony says that they will code it if they wire it, even though the wire instructions list my IRA with account number etc. at Vanguard.

So I'm left with either:

1. non-ACATS lengthy transfer process

2. having Synchrony send me a check made out to Vanguard FBO "me" and deposit into my Vanguard IRA, and eventually responding to an IRS inquiry regarding the once-a-year indirect-rollover.

I'd appreciate any comments about my thinking on this subject and any suggestions that you might have. thx!

2

Answers

Ally6770 | Mar 23, 2024 | 4,290 posts since 2010

Call Synchrony and say Vanguard will fax the request for a transfer to them and ask for the number, department and person to send it to. Ask them if they
will overnight the check FBO. If they say no ask for an alternative if they do not do over night mail or if they do FED EX or UPS and if they say there is none ask for a supervisor or manager and ask them for an alternative rather than the mail that can accommodate you. If they use mail they can over night the mail or what ever they call it now. I had it done during COVID and had the check split. It took 2-3 days but that credit union had to use FED EX or UPS. These alternatives did not deliver a check to a PO box and one was sent to me but the receiving place with a post office number was in my town. I received the check FBO and delivered it to the credit union and it was done that day. The other credit union had a street address and it also was set up the same day.

2

CTM | Mar 23, 2024 | 179 posts since 2010

Take option #2 and avoid all the fuss.

A check made to Vanguard FBO "you" is a direct transfer, not an indirect transfer.
You do not sign the check ... Vanguard will endorse it.

You can do any number of direct transfers in a year without IRS concerns.

2

Ally6770 | Mar 23, 2024 | 4,290 posts since 2010

CTM-You are 100% correct. A check made out to Vanguard for the FBO someone is made out to them not to the person and there is no need for a signature. It is not sent to you but to Vanguard. The one that was sent to me was because Fed EX or UPS who did it during COVID did not deliver to a post office number but just dropped it off to me and I took it to the credit union. I signed it for accepting the check. I did not have to sign the check. The other place had a street address and they signed for accepting it. The one I delivered it to them was the biggest credit union in my state and had a PO box for their address. I bank at one of their branches in my city.

2

12string | Mar 23, 2024 | 3 posts since 2024

I agree that a check made to Vanguard FBO "me" would be a direct transfer whether it's sent to me and I send to vanguard, but I think Synchrony will code it as a distribution if they send to me. I will check again.

I don't think Vanguard will make the transfer request directly to Synchrony for an FBO check. They want to go through their non-ACAT process which they stated is 4 to 6 weeks.

I feel like a lot of people that I have spoken to at Vanguard don't have much experience. I've been with them for a long time, but in recent years it seems more and more problematic.

Thanks for the replies, CTM and Ally6770!

1

RickZ | Mar 23, 2024 | 218 posts since 2010

From my experience, Vanguard can be a little faster than 4-6 weeks at some times of the year, but since it's tax season I think it might take the full 4-6 weeks.

I think you're likely correct that Synchrony will code it as a distribution. But I think you're worry about IRS scrutiny is misplaced. While I agree it looks a bit concerning on your 1040, I've done 2 or 3 rollovers in the past, one for a large sum, and I've never heard from the IRS about any of them. Just keep meticulous records - even if you get an inquiry you're not doing anything wrong. I even suggested to my accountant that we attach a narrative to my return detailing the rollover but he advised against it.

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