Transfer account from one financial institution to another
I recently (April 2016) opened my first Roth IRA. The funds are still in a cash position. I now want to move the Roth IRA to a different financial institution with a better fee structure. I realize this can be done directly, but my current institution wants to charge a $50 transfer-out fee. There is no fee to set up the IRA at the new institution. Can I just close out my current IRA (there are no earnings, just my initial $6,500) and then open a Roth IRA at the new institution, thus avoiding the $50 fee?
Permalink Submitted by Alan - IRA critic on Thu, 2016-05-19 20:48
You could take a distribution and roll it over as long as you have not done any other indirect rollover in the last 12 months. However, the current custodian might still have an account termination fee even if they do not process a transfer.