Roth rollover from a bank Roth CD

Submitted by Douglas Bauerband on Thu, 2022-12-22 15:59

client has Roth ira with bank in a CD. She wants out of the bank Roth cd and open up a Roth managed account with a managed account.

The bank would not draft a check to the management company but would only make a check out to the client.

This is the only IRA account that she has.

1. Do the same rules apply to this as a regular IRA rollover that you have 60 days?

2. does she have to go back to the bank and demand them to make the check out to the managed company?

Thank you and Merry Christmas to you all.
Douglas

Permalink Submitted by Alan - IRA critic on Thu, 2022-12-22 16:28

Yes, she has 60 days to complete the indirect rollover but only one of these are allowed within a 12 month period, so hopefully she still has her rollover available. Many banks are clueless about these rules.
This is up to her. Even if she qualifies for the 60 day rollover, this will block her from doing another one for the next 12 months. She may not want to use up that rollover now, but it may be a challenge getting the bank to cooperate, void the check and agree to a direct transfer check. Direct transfers should not be reported on a 1099R like the distribution she just received.