I had 2 separate IRA accounts in Merrill Edge. One of them was SEP IRA ( $46K) and the other was Traditional IRA ($342K). I wanted to transfer them to Allybank to take advantage of the IRA savings account and earn interest because Merrill Edge did not offer this type of IRA account.

Also, I wanted to combine these 2 IRA accounts because I read some articles that from IRS’ perspective, they are essentially the same thing and no need to keep 2 separate IRA accounts because they are both before tax retirement accounts.

So I called Allybank and told them I want these 2 IRA accounts to be combined in one account in their bank. They pointed me to some forms which I filled out and scanned and uploaded via their secure messaging system. I tried this twice with no success because Ally bank keep telling me form was not filled correctly and then Merril Edge sent me a letter asking for medallion signature. 3 months passed I was so pissed off so I called Merrill and told them to sent me a check.

2 checks arrived with my name on it. That is when I became aware of 60 day rule and once per year rule. But it was too late. Talked to so many financial advisors where the Allybank customer service was the absolute worst. I was able to deposit 2 checks into one account in Allybank in a matter of weeks. So there is no 60 day rule problem here.

Date on checks were 3/15/2021. I sent email to Allybank explaining 342k check should be rollover and the 46k check should be conversion to Roth IRA. But they said someone in IRA department deposit the 46k check first that check has to be rollover. But this is not my fault. I rejected this and told them to do it my way. Currently both checks.combined 388k sitting on traditional IRA.

They dont seem to hurry up as 60 day deadline is approaching. I dont want to pay 10% tax penalty on 342k check. So I need help.