How do you transfer an IRA to another bank?


Quick Answer

To transfer an IRA to another bank, contact the new bank and open an IRA of the type you currently use. Decide whether you want a trustee-to-trustee transfer or a rollover, and then transfer the funds, states Wells Fargo.

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Full Answer

In a trustee-to-trustee transfer, the original bank transfers the assets to the new bank without returning those assets to you at any point, according to Wells Fargo. In most cases, you can directly transfer all the assets you currently hold into the new account. Usually, there is no need to liquidate the investments before transferring them; many of the most commonly used assets, such as stocks and exchange-traded funds, can be transferred directly. If you need to liquidate some assets, a bank representative can outline the situation and explain your options before the transfer proceeds.

In a rollover, the assets are returned to you from the original bank, and you have up to 60 days to deposit them into the new IRA, states Wells Fargo. A rollover is reported to the IRS, and taxes and penalties apply if you exceed the 60-day limit. For combined Traditional, SEP, ROTH and Simple IRAs, you can only perform a rollover once every 12 months, starting with the day you receive the assets from the original bank.

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