For Your Information: Frequently Asked Questions
Transfers & Rollovers:
When considering a transfer, keep in mind that there is a difference between a rollover and a transfer. In a transfer, you never take possession of the assets; it goes from one institution to another. A rollover occurs when you take a distribution from your IRA and return it to an IRA within 60 days and/or you move assets from a Qualified Retirement plan (QRP) into a Traditional, Rollover or SEP IRA.
IRA Transfers and Rollovers:
| Traditional | Rollover | Roth | SEP | SIMPLE | |
|---|---|---|---|---|---|
| TRADITIONAL | Yes | Yes | Conversion or Recharacterization | Yes | No |
| ROLLOVER | Yes | Yes | Conversion | Yes | No |
| ROTH | Recharacterization | Recharacterization | Yes | Recharacterization | Conversion Recharacterization |
| SEP | Yes | Yes | Conversion | Yes | No |
| SIMPLE | Yes* | Yes* | Conversion or Recharacterization | Yes* | Yes |
| QUALIFIED RETIREMENT PLAN | Yes | Yes | No | Yes | No |
Comments
* SIMPLE IRAs can only be transferred to another SIMPLE IRA if they have been established for less than two years.
You may want to consult your tax advisor before transferring your IRA. Certain tax implications could be involved if it is done incorrectly.
Transferring an Account:
Where are my accounts held? Your account is not held by Golden Gate Advisors. All accounts are held by our Custodian which is an SPIC insured publicly traded company completely separate and independent from Golden Gate Advisors. On-line password protected access to your account is provided with quarterly reports mailed to each client.
How long will my transfer take? The length of time it takes to transfer an account depends upon the type of transfer you are requesting. Time frames and information on each specific type are listed below:
Total Brokerage Account Transfer: Most total brokerage account transfers are sent via ACATS.
ACATS: Automated Customer Account Transfer Service, is a regulated system through which the majority of total brokerage account transfers are submitted. Member firms of the NSCC are required to submit total account transfers through this system. These transfers take approximately 5-8 business days upon initiation.. Transfers coming from some smaller firms, which are not members of the NSCC are processed as non-ACATS transfers.
NSCC: National Securities Clearing Corporation is responsible for regulating and governing the ACATS system. The New York Stock Exchange, American Stock Exchange and the National Association of Securities Dealers own the NSCC.
Non-ACATS: Transfers are generally from institutions such as banks, insurance companies and mutual fund companies. This may also include transfers from smaller brokerage firms that do not have membership in the NSCC. We require an original signature for these, as they must be mailed to the delivering firm. Generally, transfers that cannot be accomplished via ACATS take approximately three to six weeks to complete. This time frame is dependent upon the transferring firm and may take longer. Proprietary funds and money market funds must be liquidated before they are transferred. Our completed transfer form is required. Expected Length of Time to Transfer: The transfer will take approximately 5-8 business days upon initiation.
Partial Brokerage Account Transfer: If you are transferring only a portion of your brokerage account, you will need to list the specific number of shares for each asset to be transferred when you complete the transfer form. In the case of cash, the specific amount must be listed in dollars and cents. This type of transfer is processed as a non-ACATS. Expected Length of Time to Transfer: Approximately three to four weeks from the date your completed paperwork has been received.
Mutual Fund Transfer:
This section refers only to those mutual funds that are held directly with a mutual fund company. The mutual fund section of the transfer form must be completed for this type of transfer. You may enter several funds (individually) on one transfer form providing they are all held at the same mutual fund company. You must choose whether you want each fund to be transferred as shares or to be liquidated and transferred as cash. This type of transfer is processed as a non-ACATS. Expected Length of Time to Transfer: Approximately three to four weeks from the date your completed paperwork has been received.
Direct Rollover from a Qualified Plan: This type of movement includes: 401k, 401a, 403b, ESOP, Keogh, PSP, Defined Benefit Plan, Defined Contribution Plan, among other employer benefit plans. If you have met one of the qualifying events as outlined in IRS regulations, you may be able to move your current Qualified Retirement Plan into an IRA at our Custodian. Generally, plan funds are distributed according to the instructions provided by the participant. In other words, we cannot request the funds on your behalf. You may want to contact the administrator of your Qualified Retirement Plan to find out the procedures to remove funds from the plan and whether you are eligible to roll the funds out of the plan.
Your Qualified Retirement Plan can be moved into a Traditional Contributory IRA or a Rollover IRA. Please contact us or your tax advisor for assistance in determining the type of IRA that will best suit your needs. Please be aware that the IRS does not allow Qualified Retirement Plan accounts to be put directly into Roth IRAs. They must first be moved into a Traditional IRA and then converted. Expected Length of Time to Transfer: Generally, it will take 30 to 90 days from the date all necessary and completed paperwork has been received. Please contact your plan's administrator for an exact time frame on this type of transfer.
Bank/CD/Annuity Transfers: To transfer cash funds from your financial institution's checking or savings account, it is best to send a personal check. Ask about check guidelines for more information. CDs and annuities must be redeemed before transferring. When transferring a CD, you can have the CD redeemed immediately or at the maturity date. If transferring at the maturity date, you must submit your transfer request by no later than 21 days before maturity date. Annuities must be surrendered immediately upon transfer. We will need to contact your annuity provider or financial institution to see which penalties would be incurred in these situations. This type of transfer is processed as a non-ACATS. Expected Length of Time to Transfer: The transfer will take approximately three to six weeks from the date your completed paperwork has been received.
How much will it cost to transfer my account? Our Custodian does not charge our clients a fee to transfer an account to them. However, there are sometimes fees attached to holding certain types of assets in your account. For example, non-standard assets—such as limited partnerships and private placements— may be charged additional fees because of the additional handling required.
Delivering firms will usually charge fees to transfer the account out, which may result in a debit balance once your transfer is completed. To avoid transferring the account with a debit balance, contact your delivering broker to clear up any fees before transferring the account.
How do I transfer options contracts? If your account transfer includes options contracts, the transfer of your entire account could be delayed if we receive your properly completed transfer paperwork less than two weeks before the monthly options expiration date. In this case, your contracts may be exercised or assigned by the firm from which you are transferring your account. Your transfer to our Custodian account will then take place after the options expiration date. Golden Gate Advisors assumes no responsibility for the exercise of prior option contracts.
Source: TD Ameritrade Institutional