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Roy, Thanks for the input.

<What's illegal? Based upon what code section? I don't know what's illegal about it.>

He said that in order to do a transfer, they would need the signature of the account holder. They can not legally transfer the account without it.

<Perhaps American Enterprise just doesn't want to lose control of the funds, and they're lying to you? It wouldn't be the first time.>

I am sure they want me to keep the money there. They may be lying or maybe the guy is poorly trained.

<Or perhaps the original beneficiary statement with American Enterprise was poorly done or not done at all...and this could make a difference.>

According to "A Guide to your American Enterprise Life IRA" booklet:

Under the heading "Transfers" it says "You may transfer you IRA from one IRA custodian, trustee, or issure at any time and as often as you wish with no tax reporting to the IRS or adverse tax consequences as long as you do not actually take possession of the funds." It also says "You will have to check with both the old and new institutions for specific IRA transfer procedures."

Under the heading "Prohibited Transactions", it says, "If you or your beneficiary engage in a prohibited transaction with yout IRA, your IRA will lose some or all of its favorable tax status....Prohibited transactions include:....assigning, pledging or transferring your IRA..."

It does not say why or by whom these transactions are prohibited. The guy on the phone definitely used the word "illegal", but is there anything here that prevents me from doing what I want to do? Thanks again for your help.


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