I have a Roth IRA at my bank.. I want to have a Roth IRA at a different bank because the rates are better..

Question

Can I transfer the money in my roth ira to the one I want to open up with a different bank.. Even though there is like 12,000 in the roth ira i have now..

Answer 1

You can transfer the Roth IRA to a different institution, but the key issue is that you must never receive the check yourself. You'll need to get paperwork from the financial institution that you want to deposit your funds, and your current Roth IRA bank needs to complete the paperwork and transfer the funds to the new institution. If you have the bank issue you a check and then you make the deposit into the new bank, the original bank will be forced to consider the transaction as an early withdrawal of your IRA and take withholding out of the check-ouch!

So, I guess Step One for you is to contact the new bank and ask them what you need to do to start the transfer process.

Answer 2

There are two issues in play.

One is that it is an IRA (Roth or otherwise doesn't matter in this situation).

Thus, you must do a bank-to-bank transfer, not bank-you-bank, as the other answers have stated.

The second issue is the terms of the account at the first bank.

If the account is a CD with penalties for early withdrawal, then

it is inadvisable to do the transfer before it matures.  The penalties

will probably outweigh the advantages of the other bank. So you

just wait.

On the other hand, if it is just a normal savings account, then

you are free to transfer it any time you want, so you can go

ahead.  Start by contacting the other bank.

.

Answer 3

Take your last statment to the new bank and ask how to transfer the money.  Never ever touch the money your self. Let the banks do all the work for you.  Ask many questions about the procedure.  Good luck.