No. of Recommendations: 1

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.

You're probably right about this. My transfer was for about $10K.

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.

In my case, not much. I sold a mutual fund at zero cost, and transferred to BrownCo where I can make trades for $5. Actually though, I made the transfer this way so I could then convert the cash to my ROTH IRA before the end of the year. It took about 7 days total instead of several weeks for a direct transfer.

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.

I agree, but there may be times when it is the best way to go.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.