IRA Rollover: Time to Execute
Is there a rule of thumb to determine how long it takes to do an IRA rollover from an employer sponsored plan to the new custodian (TDA brokerage)? If I decide I want to retire on Dec 1 is that enough time to have the rollover completed before Dec 31? Just how much time does it usually take to execute the rollover? Thanks
Permalink Submitted by Alan - IRA critic on Mon, 2013-02-25 23:13
I would guess about 2-3 weeks on the average, but there are several variables. In your case, if you are not eligible for the rollover unless you retire, your HR Dept is going to have to process your retirement papers such that the plan administrator (perhaps another company like Fidelity or Vanguard) knows you are eligible for the distribution. The type of investments in your plan may not all be supported by TDA and would have to be sold in the plan, so you might provide TDA with a statement copy so they can tell you what investments you need to sell in the plan. You can then get that done before you submit the papers for a direct rollover. Although you may be out of the market for awhile, for tax purposes it does not matter when the check is released since you will be reporting a tax free direct rollover anyway (in the tax year the 1099R indicates).
Permalink Submitted by mk foss on Wed, 2013-02-27 02:00
When amounts are being rolled from a Qualified Retirement Plan to an IRA directly -either by wire transfer or check made out to the IRA custodian – there is no 60 day limit. So ordinarily everything would be accomplished within 60 days but there is no pressure on the taxpayer to make sure it happens. Of course, if you received a check that you can negotiate, you have only 60 days to place it in an IRA or similar account.