I tried to transfer from fidelity to another rollover ira but it is just such a pain in the ass with fidelity. Web portal is full of errors, eventually i gave up with all those technical malfunctions. I am considering just withdraw from Rollover IRA as a normal check and re-deposit within 60day to recipient Rollover IRA account. I understood this whould not incur any taxes (chatgpt search result below). I just want to confirm here and also if anyone has done and encountered any hiccup like IRA knocking on your door or extra hassle involved (proof during next year's filing) Even if it doesnot incur penalties and IRA wants to verify, it could be pain in the ass. I just wanna make sure it is uneventful as normal IRA to IRA transfer. " Learn more To successfully transfer funds from a rollover account and avoid taxes and penalties, you must redeposit the full amount within 60 days of receiving the distribution into another eligible retirement plan. Here's a more detailed explanation: The 60-Day Rule: The IRS allows you to roll over funds from one retirement account (like a 401(k) or IRA) to another without immediate taxes, provided you deposit the funds within 60 days of the withdrawal. What Happens if You Miss the Deadline? If you fail to redeposit the funds within 60 days, the distribution will be treated as a taxable withdrawal, and you may also be subject to early withdrawal penalties if you are under age 59 1/2. Eligible Retirement Plans: You can roll over funds to other eligible retirement plans, including: Traditional IRAs Roth IRAs 401(k)s Other qualified retirement plans "
here is what i found as a record, looks like some pain in the ass that i have to report it: ( If you redeposit an IRA rollover withdrawal within 60 days, you generally do not need to provide proof to the IRS when you file your taxes. However, you must report the rollover on your tax return. Here’s how it works: IRS Reporting – When you withdraw funds from an IRA, the financial institution issues Form 1099-R, which reports the distribution. Tax Return Reporting – You must report the distribution and subsequent rollover on Form 1040: Enter the full distribution amount on line 4a (IRA distributions). Enter "0" or the amount you kept (if any) on line 4b (Taxable amount) and write "Rollover" next to it. No Immediate Proof Required – You don’t need to submit proof when filing, but you should keep documentation (like bank statements or confirmation from your financial institution) in case of an audit. Important Considerations: If you miss the 60-day deadline, the amount will be considered a taxable distribution, and you may owe taxes and penalties. You can only do one rollover per 12-month period per IRA (this limit doesn’t apply to direct trustee-to-trustee transfers). Would you like help understanding the tax implications in more detail?
THEY Are horrible on the phone, keep fwd-ing, even used to go to branch but then they refused to serve. WHy webinterface capability in the first place if we have to phone it?
Mandatory 20% withholding is a good reason not to do this and instead do a direct rollover. https://www.irs.gov/retirement-plan...nt plans: A retirement plan,plan or to an IRA.
I disagree. Does not apply to dealing with disembodied automatic answering machine or untrained customer service.
saw it, but i think last sentence will apply to my situation, but i agree it is kinda ambiguous as well: Retirement plans: A retirement plan distribution paid to you is subject to mandatory withholding of 20%, even if you intend to roll it over later. Withholding does not apply if you roll over the amount directly to another retirement plan or to an IRA. A distribution sent to you in the form of a check payable to the receiving plan or IRA is not subject to withholding.
If the check is payable to the receiving plan or FBO with your name, it is for a rollover. When I rolled over 401(k) accounts to an IRA, the 401(k) administrator mailed checks FBO my name. Then I had to mail the checks to my IRA administrator to complete the rollover.
Yeah the brokerage does not that have option only for blank check which i requested. But strangely, it did not hold madnatory 20% instead gave me an option tp specify percentage all the way down to 0% holding which i chose. This is confusing as to what happens from them now on.