No. of Recommendations: 3
Author: Crosenfield | Date: 1/6/05 10:14 PM | Number: 43923
The way I would handle this is tell your current IRA broker you want to close your account and receive a check. They send you the paperwork, you return it, they send you the check. From the date of the check, the clock is ticking. You deposit their check in your checking account and write your own checks to the new custodians. Voila! You MUST have the cash in the new IRAs within 60 days. If it takes you 61 days it is a premature distribution, subject to tax and penalties, and you can't put it in the new IRAs.

Watch out! If you do this, the current custodian is required to withold around 25% for taxes in case you don't follow through and deposit the check in another IRA. You can still roll over the entire amount to your new IRA, but you have to come up with the amount that was witheld out of your own savings. You will get the withheld money back as a refund when you file your income tax return and show that you rolled the entire amount into a new IRA.

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