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URL:  http://boards.fool.com/hahahahha-i-just-figured-out-the-cut-and-paste-10011448.aspx

Subject:  Re: Vanguard IRA Date:  7/3/1997  11:26 PM
Author:  golfingfool Number:  100 of 76098

HAHAHAHHA I just figured out the cut and paste procedure <sily foolish grin inserted here>

I believe you're under a misconception here, so I'll sound another word of caution. A direct transfer and a rollover, while similar in their ultimate outcome, are definitely NOT the same kind of transaction. A rollover from one IRA (or qualified retirement plan) to another occurs when YOU get the funds from the old vehicle in a check made out in your name. On receipt of that check, you have 60 days to roll that money to another IRA to avoid taxation. You may roll that money only once every twelve calend
ar months.

Yes... I was under a misconception... that stems from the people telling me the procedures not knowing the correct terminology....

A direct transfer occurs when you never have actual or constructive receipt of that money. Instead, it goes directly from the old IRA or plan custodian to the new custodian. A direct transfer may occur as often as you want, and no adverse tax impacts will ensue.

The check i received was made out to my bank as a custodian of my IRA account...

As to your statement regarding the '...20% penalty on any cash you take from it ...,' I think you're mixing two concepts here. The first deals with ordinary income tax withholding, and the other with the excise tax on early withdrawals from retirement plans and IRA. Neither will occur in a direct transfer, and both could occur in rollover.

Again.... misinformation from the misinformed <G>....

Bottom line is..... I managed to make the transfer of funds without incurring penalties...... Thanks for your informative answer (which was mostly deleted in this reply in the interest of saving space)

Regards....



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