CD IRA rollover split into two accounts
client has 80k CD IRA that is due now on the 14th of Sept. NO way to get transfer over their before it renews.
a. if she take the money out of the IRA and then we reinvest with in the 60 days into two different contracts, is this reported as a 1 rollover?
or
b. since we divided the money she received, does it count as two rollovers even though she got one check from the bank?
Thankyou,
Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2015-09-10 19:43
It would be just one rollover because there was only one distribution. In many cases, a CD renewal includes a grace period of a few days and if this CD includes such a period, there would be more time to complete a direct transfer. Finally, note that a check made out to the new custodian FBO (client) IRA is considered a direct transfer, even if the check is given to the client who then forwards it to the new custodian.
Permalink Submitted by Douglas Bauerband on Thu, 2015-09-17 23:49
your last note was; Finally, note that a check made out to the new custodian FBO (client) IRA is considered a direct transfer, even if the check is given to the client who then forwards it to the new custodianif she received the check she would have to cash it and write out a new check to the company. Investmen companies will not accept 3rd party checks.
Permalink Submitted by Alan - IRA critic on Fri, 2015-09-18 00:04
Then how do they get any 401k rollover business? Almost all direct rollovers are done with a check made out to the new IRA custodian.