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I am having a problem with my Etrade IRA account regarding the rollover of my 401k funds. I am hoping that one of you Fools can provide some guidance to me.

I started an IRA rollover account with E*Trade and following their directions, I had my old 401k plan administrator send the rollover check to Etrade. Upon receiving my check, Etrade promptly deposited that check into my non-IRA account. I have spent the past eight days trying to get this error corrected. On my first call to Etrade, I was told that it would take 48-72 hours. It is now well beyond that time and it appears that Etrade is unwilling to correct their error. Over the past eight days I have made at least 4 phone calls (spending at least four hours on the phone), and have sent them numerous emails, yet the error remains.

Does anyone have any suggestions? Is this something I could contact the SEC, NASD or any other regulatory agency about? It seems that further contact with E*trade would not be beneficial since they have not taken any action on this problem yet.

Thank you in advance.
Tim Murray
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<<I am having a problem with my Etrade IRA account regarding the rollover of my 401k funds. I am hoping that one of you Fools can provide some guidance to me.>>

This isn't the first time I've heard this problem with E*Trade, and it's a very serious problem. Do you have name/rank/serial numbers for the people you've spoken with? I always ask, "Who's your supervisor?" as well. Do you have copies of your instructions, and did it include the number of your new account?

If they have an 800#, I'd call at least once a day and keep moving up the supervisory food chain. And yes, I wouldn't hesitate to take it to the SEC.

If you need a new online broker, I had nothing but courtesy and help from DLJdirect recently setting up the same type of account. My problem was with the original custodian. I've always had excellent service and helpful phone calls with them.

Good luck, and let us know how it turns out.
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<< I started an IRA rollover account with E*Trade and following their directions, I had my old 401k plan administrator send the rollover check to Etrade. Upon receiving my check, Etrade promptly deposited that check into my non-IRA account. I have spent the past eight days trying to get this error corrected. On my first call to Etrade, I was told that it would take 48-72 hours. It is now well beyond that time and it appears that Etrade is unwilling to correct their error. >>

I agree with everything in the prior response. I just want to caution you that this MUST be resolved within 60 days of when the check was cut by the 401(k). If push comes to shove, jump through whatever hoops you need to with E-Trade to get the money from your taxable account to your IRA. (This can be handled as a rollover with you in the middle rather than a trustee-trustee transfer, if necessary.) After it's straightened out, you'll have plenty of time to move your accounts, which I imagine you'll want to do.

TMF ExRO
Phil Marti
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Thanks to those who responded. I have filed complaints with the SEC and NASD. I continue to send email to E*Trade on this issue. The latest response from E*Trade was that they sent this issue to the wrong department.

Hopefully, E*trade will have this issue resolved by the time I retire (in about 30 years).

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