Watch out for the process and the timing.
We all know that doing a direct trustee-to-trustee can be a pain, and takes a lot of time.
BUT, beware also that it is UP TO YOU to manage the process.
Example: I faxed over transfer forms on 12/17. End of month .... nothing had happened. Credit Union was to FAX info to Fidelity, so the delay should have been about a week or so.
Turns out the paperwork sat at the credit union for two weeks, and originally reported to me that they had not received anything. After I pointed out exactly when it was faxed to them, they found it sitting in their fax queue. Then, two weeks later, still nothing from either Fidelity or the credit union.
Turns out that there was a problem in the paperwork (my fault), and Fidelity let the credit union know back on 1/5 via US MAIL. Credit Union got the mail notice on 1/17 - but had not yet worked the mail.
POINT TO ALL OF THIS is that you should not just "send it and forget it" when it comes to transfers. If the existing IRA custodian will take a fax, then you should see some activity of it going out within a week or so. Should be at the new custodian via us mail after another week, so hopefully less than two weeks for a normal transfer. Three weeks if they only work on originals from the US MAIL. But it is still up to you to make sure the new custodian forwards the paperwork on a timely basis, and the existing custodian is timely about working it and send out the money. Of course, it could also get delayed or lost in the mail.
NOT that big of deal with small dollar amounts, but if the IRA is sizeable, even at today's low rates, it starts to add up to some lost $$$.
DO NOT depend on the financial firms to manage the process. They only react to inbox items, and do not seem to have any system to follow on the next step in the process. So check at least every week to make sure that things looks normal. My two week transfer will end up taking 6 weeks. 2 because the credit union failed to get things out (until I contacted them), then another 2 because of an error that was communicated via US MAIL (and only found after I called AGAIN), and another expected 2 weeks to re-do and mail the transferred funds.
I usually only do IRA/ROTH transfers for a minimum of 2 year maturities because of the dead time between the money being inside of paying CDs. Do not want long term CDs because we are in a rising rate environment. SO IT'S UP TO YOU AND ME to manage the process.
