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Moving IRA from bank CD to anything else - quickly
Posted by: mrbigstuff
Date: October 08, 2020 11:14AM
I have one day to move my pathetically low interest bearing CD to another instrument. What say you? Low amount, so I'm not going to retire on this, but still. It's a traditional IRA.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: anonymouse1
Date: October 08, 2020 11:17AM
Maybe an IRA money market? Or an ETF?
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: Acer
Date: October 08, 2020 11:18AM
Vanguard? Fidelity? You can drop it in a money market there, then move it around later, and keep the IRA status in the meantime.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: freeradical
Date: October 08, 2020 11:23AM
Interest rates aren't going up anytime soon, so maybe an intermediate term bond fund.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: mattkime
Date: October 08, 2020 11:25AM
Why do you have only one day?

Move it to vanguard, plenty of options there.

Can discuss what to invest in separately.



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Re: Moving IRA from bank CD to anything else - quickly
Posted by: mrbigstuff
Date: October 08, 2020 11:31AM
I've got an etrade account now, can I transfer to that while deciding later a more long term solution?
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: Acer
Date: October 08, 2020 11:37AM
Careful--gotta roll it over to an IRA instrument, or you'll have to pay the taxes and perhaps a 10% penalty. I don't know if etrade has an IRA rollover. If you are over 59 1/2, maybe you want to just pay the tax then and do with it as you will.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: GGD
Date: October 08, 2020 11:41AM
Quote
mrbigstuff
I've got an etrade account now, can I transfer to that while deciding later a more long term solution?

IF the Etrade Account is an IRA of the same type as the CD. If you move it into a "normal" account you've essentially made an early withdrawal of the entire IRA.

With brokerages you can usually open an account of the proper type within minutes and then should be able to transfer to that new IRA account. You should call their customer service and explain the situation and make sure you follow the proper steps so that the funds remain in an IRA the entire time.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: mrbigstuff
Date: October 08, 2020 11:54AM
Ok, thanks, folks. I appreciate the quick response. My fault for tossing the notice aside a month ago!
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: Ammo
Date: October 08, 2020 12:06PM
Could you just transfer the funds into an IRA savings account at the same bank? Then you could move that money to a different institution at your leisure.



Where is there dignity unless there is also honesty? - Cicero

Be kind, for everyone you meet is fighting a battle you know nothing about. —Wendy Mass
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: SteveO
Date: October 08, 2020 02:43PM
Ditto the recommendations of opening an IRA instrument (even if it is just in a cash vehicle that you can transfer into a securities- or MM, CD, etc) with respected companies such as Vanguard, American Century, Schwab, and Fidelity. These are among the few major financial companies who chose not to participate in the mutual fund scandal of several years ago. Call them, they can help you get into the right vehicle over the phone that preserves the IRA status.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: Michael
Date: October 08, 2020 05:36PM
A trustee to trustee transfer is recommended and is what folks are talking about. But, you can also have the money sent directly to you and you have 60 days (not 2 months...) to roll it over to a new IRA without penalty. So, if it all goes south and you can't open a new IRA immediately, there's another option. Be very careful if you have the money sent directly to you!
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: mrbigstuff
Date: October 08, 2020 08:51PM
Quote
Michael
A trustee to trustee transfer is recommended and is what folks are talking about. But, you can also have the money sent directly to you and you have 60 days (not 2 months...) to roll it over to a new IRA without penalty. So, if it all goes south and you can't open a new IRA immediately, there's another option. Be very careful if you have the money sent directly to you!

I did not know this, thank you. I'm sure my bank won't volunteer that info.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: stephen
Date: October 08, 2020 10:18PM
I'm using retirement date funds for some of my holdings and they seem to be performing better than timing the market. But they're not performing better than my AAPL. : )
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: mrbigstuff
Date: October 09, 2020 10:41AM
Quote
mrbigstuff
Quote
Michael
A trustee to trustee transfer is recommended and is what folks are talking about. But, you can also have the money sent directly to you and you have 60 days (not 2 months...) to roll it over to a new IRA without penalty. So, if it all goes south and you can't open a new IRA immediately, there's another option. Be very careful if you have the money sent directly to you!

I did not know this, thank you. I'm sure my bank won't volunteer that info.

So, sure enough, my bank does not "offer" that. The best I could do was to renew as a 3mo CD. I'm ok with it, as I'd probably take the full 60 days to decide anyhow.
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Re: Moving IRA from bank CD to anything else - quickly
Posted by: NewtonMP2100
Date: October 10, 2020 08:37PM
.....I like to move it........move it.......



_____________________________________

I reject your reality and substitute my own!



Edited 1 time(s). Last edit at 10/10/2020 08:37PM by NewtonMP2100.
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