Retirement account transfer fee avoidance

Dienekes · Post by **Dienekes** » Wed Mar 23, 2011 7:59 pm

I'm looking to transfer a Roth IRA account from TDAmeritrade to Fidelity or Vanguard. TD charges a $75 transfer fee. To avoid the fee, I am thinking of selling all my positions in TD and then asking for a check sent directly to me. I can then close TD without paying the transfer fee (unless there is a closing fee that I am unaware of). According to IRS pub. 590, if I put the money from the check into another Roth IRA account within 60 days, there are no tax implications.
Has anyone done this successfully or researched the issue? Does this transfer need to be reported to the IRS (for instance, how is the 60 day rule enforced)?

Post by **jacob** » Wed Mar 23, 2011 8:31 pm

Can you do an indirect rollover, i.e. TDA makes the check out to Vanguard or Fidelity instead of you? This would be preferred.
It may also be the Vangaurd or Fidelity pays the transfer fee, have you checked into that?
I've done a couple of indirect transfers. They are reported on 1040 line 15a with a taxable amount of 0 and you write rollover in the margin.

Dienekes · Post by **Dienekes** » Thu Mar 24, 2011 2:03 am

Thanks Jacob. It wouldn't hurt to give Vanguard or Fidelity a call to see if they are willing to pay the transfer fee. This would be the cleanest method.
Otherwise, I might just cash out of TDA to avoid the fee.