"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." Russ, I don't think you are correct on this one. In 2004 the custodian of one of my IRAs offered me "no account fees for the life of the account, if you transfer $xxxxx into the account by July 1." I decided to take them up on it. For reasons that seemed good to me, I didn't particularly want the custodian of my other IRA to know what I was doing with the money. I called them up and asked for a distribution. Paperwork followed, with the check right after that. There was no withholding. In this instance, I actually sent the check to the other broker, but if it was going to multiple accounts would have done it the other way. There was no withholding. Of course, the distribution will be reported and I can show what I did with it. The withholding is when you leave a job and someone makes the mistake of taking a cash distribution from proceeds of a 401k. Wrong! But there is not such a withholding when taking an IRA distribution, allthough come April 15 you must account for it. I did it. The only real differences are that I took a partial, not a full distribution from the IRA, and I am over 59 1/2. Best wishes, Chris
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