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The Receiving Bank Or Credit Union Faxing A Transfer Request For An IRA .

Ally6770   |     |   1,928 posts since 2010

I have never been able to fax a transfer request and the receiving institution has never been

able to fax a transfer request in the past. 

I have 4 IRA's maturing today and next month and have been able to have the institution receiving the money fax the request to the sending institution. It was never allowed in the past.

I have most always picked up the check to transfer or have had the institution mail it to me and I always over nighted it.  If the check was made out to the receiving institution it was always called a transfer for tax purposes. The first institution mailed the check today. I want to see how

long it takes to get there and to be processed. I also have 2 others at another institution that just confirmed that they will also accept a fax request. Those IRA's mature on the 15th, and I have 2 more next month. In the past I was never able to have the receiving institution send  

the transfer papers by fax. So now that we cannot do rollovers this at

least this will save some time. Not sure if this is a new thing or if it has been allowed for a while and I did not know about it and continued with rollovers until after this new ruling. 

I am not comfortable not doing the transaction myself. This new ruling is troubling to me. 

I hope this information might help others. Just make sure that everything is notorized and filled out properly or it will delay everything. 

Shorebreak   |     |   4,061 posts since 2010
I've had many IRA accounts mature over the years, and if a decision was made to move the funds to a different financial institution, I never handled a check myself. This was accomplished between the two institutions involved in the transaction. The transfer request and account paperwork were completed by me beforehand and mailed back to the institution on the receiving end of the funds. This also applied to changing brokerage firms when I was not happy with fees charged or the performance of investment products.   
paoli2   |     |   2,212 posts since 2011
Call me paranoid but I always like to at least "see" a copy of the check that will be going from one institution to the next to make sure it is worded correctly.  Yes, even professionals can make mistakes and when it comes to IRA accounts, I do not want to see mistakes since they will return to haunt "me".
Shorebreak   |     |   4,061 posts since 2010
There are generally two ways to do a direct IRA transfer. First, you can have your IRA money wired electronically to your IRA with another IRA custodian. Or, second, you could do a direct transfer by using a check. If a check is used, it must be made payable to the new IRA custodian for the benefit of your IRA. For example, an IRA direct transfer check might be made payable as follows: “ABC Broker FBO John Doe IRA” or something similar that has both the name of the IRA custodian that’s receiving the funds and the name of your IRA on the check.

If a check is used, it’s usually mailed to the receiving IRA custodian. Some financial organizations might allow you to hand-carry the transfer check yourself to the receiving IRA custodian instead of mailing it. Either way is fine.

Trying to Avoid IRA Transfer Fees Can Be Costly | Ed Slott and Company, LLC
I utilize the former method of transfer from custodian to custodian. It seems more secure and faster.
Ally6770   |     |   1,928 posts since 2010
I have never had a credit union or bank agree to debit an account for a transfer or to wire money for a transfer of an IRA. They always say they have to have a paper audit of the complete transaction. 

I have had them even refuse to accept a fax in the past. I have always been able to do 
a rollover myself and it would be completed in 3 to 7 days after the first check was mail from the sending bank. I am going to track how long this transfer takes.

Some banks even have a main mailbox where a bank messenger will pick up the mail, bring it to another city to be sorted for cheaper postage, run through a postage machine and then workers take the mail to the post office every day in big trucks. 
Ally6770   |     |   1,928 posts since 2010
Allowing the receiving credit union to send the transfer request by fax cut down on the time substantially. The check was mailed on Monday and the new CD was opened on Friday. I mailed a second request to the same receiving credit union for an additional transfer from a different credit union and they also will allow the transfer request to be faxed. Will see how this ones does. The CD's do not mature until the 15th. 
DennisTheAlly   |     |   1 posts since 2015
Be sure:  if you take a check rather than a direct transfer,  isn't some tax money automatically withheld???
Ally6770   |     |   1,928 posts since 2010
I have never had taxes taken out of a transfer or from a rollover. I have had IRA's since 1978 and picked up checks with a couple of years after that. I have picked up checks for both myself and my husband.  Have done many more rollovers and few  transfers until this year. I do not like transfers and not being able to receive confirmation that the check has left the city and that it has made its destination the following day and even being able to print out a copy of the signature of the person signing for the check.  

Have had 4 IRA's transferred this year and the last 2 are this month. The sending institution has received the faxed request 2 weeks ago. Have not received any answer to my email to NCUA about it being considered a transfer if I pick up a check made out to the institution  for the benefit of me as a IRA. The sending institution said it would be considered a transfer but IRS said the opposite.