Roth IRA Direct Transfer If Check Issued

Forum|Forum|3 years ago
September 30, 2022
1 reply
21 views

I am trying to transfer Roth IRA funds from broker to bank. If broker sends a check from my Roth account made payable to <<Receiving Institution>> FBO, For Benefit of <<my name>> and sends to my address, and then I bring to the bank but I don't cash this check but rather bring this check and deposits directly into my Roth IRA at bank is this considered a direct transfer?

Critter-3

Level 15

Yes ... this is a direct transfer because YOU cannot negotiate the check ... it must be put in the account the check is written out to.

dmertz

Level 15

However, the check should be made out to <<Receiving Institution>> FBO <<my name>> Roth IRA. Leaving off the "Roth IRA" portion allows the check to be deposited into any of your accounts at the receiving institution. Depositing it into an account other than a Roth IRA would disqualify the transaction from being a trustee-to-trustee transfer even if the funds are subsequently deposited into a Roth IRA. If that happens it would constitute a reportable distribution and rollover rather than a nonreportable trustee-to-trustee transfer.