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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 81567  
Subject: Re: Transferring an IRA Date: 1/3/2004 1:20 PM
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I did a "check to me then my check to another broker" type transfer last week. Not sure why everyone thinks that things will go wrong.

It's not that things WILL go wrong. On the contrary, they very often go just fine. But IF things go wrong, they can go VERY wrong.

Basically, the risk is proprotional to the amount of the rollover. For an IRA with a couple thousand dollars, the risks aren't that great. If you were doing a rollover with a few HUNDRED thousand, then I wouldn't recommend taking the risk.

I saved about $60 by not having to pay for a "partial transfer of funds" (Schwab).

And how much did you spend in commissions to liquidate all of your positions? And acquire new positions (in the same securities?) in the new account.

That's another advantage of a direct transfer. The securities themselves can be moved without having to convert everything to cash.

I guess it's just a bit of professional caution. You can almost never go wrong by doing a trustee-to-trustee transfer. When the IRA owner gets the cash is when things can turn messy.

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