I have some basic questions about doing a direct trustee-to-trustee Roth IRA transfer from Thrivent Financial to Vanguard. I want to make sure it goes through as a transfer and not a rollover. I understand that the best way to do this is to have Vanguard initiate the transfer.
1) My Roth IRA is currently invested at Thrivent in a fund that is not an option at Vanguard. Should I sell out of the fund so my money is in cash/money market fund before initiating the transfer, or don't worry about it and initiate the transfer as is (I assume Vanguard would bring it in as cash/money market if they don't have the current holding)?
2) I do not have a Roth IRA account at Vanguard currently. Should I open one and then call Vanguard/go online to initiate the transfer, or is the Roth IRA account opened as part of the transfer process?
Direct IRA transfer
Re: Direct IRA transfer
Yes, it is generally better to have the receiving brokerage initiate. They have more incentive.SesameHiker wrote: ↑Mon Sep 20, 2021 1:10 pm I understand that the best way to do this is to have Vanguard initiate the transfer.
I expect it would probably move as cash without your selling, but by your selling first you know that step is already completed and won't be an issue.My Roth IRA is currently invested at Thrivent in a fund that is not an option at Vanguard. Should I sell out of the fund so my money is in cash/money market fund before initiating the transfer, or don't worry about it and initiate the transfer as is (I assume Vanguard would bring it in as cash/money market if they don't have the current holding)?
It may be opened as part of the transfer but I would open the Roth IRA first. Get that completely set up before attempting the transfer. Do one thing at a time. The more moving parts the more chances that something will go wrong.I do not have a Roth IRA account at Vanguard currently. Should I open one and then call Vanguard/go online to initiate the transfer, or is the Roth IRA account opened as part of the transfer process?
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Re: Direct IRA transfer
I don't know about vanguard but many custodians have an option in the transfer to "sell and transfer cash".
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Re: Direct IRA transfer
Call Vanguard. You should have the option to transfer in kind (without selling) or to transfer cash. Depending on what positions are in the account, you may be charged fees to liquidate on Vanguard's end. However, you will take a risk of being out of market until the transfer is completed.