Medallion Guarantee Signature – 529 to Roth IRA Transfer

Submitted by Ray Kaufman on Wed, 2024-06-12 20:33

I am trying to transfer $7000 from a 529 (South Carolina Future Scholars) to my sons Vanguard Roth IRA. The transfer form from SC Future Scholars requires a Medallion Guarantee Signature. The credit union I do business with has no one who does that. I went to Bank of America where I have a business account but they won’t do it unless I have a personal account there for a certain period of time. I checked with Vanguard who has an office in Charlotte where I live but they don’t do it. Future Scholar does not have any either.

There is a lookup tool for the city you live in but the banks on the list I’m sure would require an account.

Any ideas how I can get a Medallion Guarantee Signature? There is an online one that possibly would do it but it looks like they charge $149. I wasn’t expecting to pay to do this transfer.

Thanks for any assistance.

 

 



Submitted by Alan - IRA critic on Thu, 2024-06-13 13:52

This has become a real hassle in recent years. Can you appeal the requirement to the 529 plan given that you are only transferring 7000?  Another possibility is to just get a normal signature guarantee and hope it goes through.

Submitted by Ray Kaufman on Fri, 2024-06-14 14:54

Thank you. They have reluctantly filed an exception to upper management for approval. We’ll see what happens.

Submitted by Ray Kaufman on Fri, 2024-07-12 18:21

Just to update.

The SC Future Scholars Plan suggested that I get a Medallion from an online esignature option.
I would not do that because they scored an F for a Better Bureau rating.

I requested an exception because my banking relationships did not offer a Medallion and the poor online option.
The exception was denied.

I contacted my SC state house representative who contacted the SC state treasurer’s office about it.
The office offered to approve it without a Medallion if I drove 100 miles to the state capital and met in person.
I did not do that because I will be doing this multiple years and I’d have to take a days off.

I found a bank locally that offered a Medallion after 6 months if I setup an $50 online checking account.
That met my need but this was an ordeal

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