Five months ago, the Wife and I decided to move our Roth IRAs from one bank to another. When dealing with large corporations and money, a certain amount of red-tape I expect. I did not, however, anticipate a certain institution–rhymes with Bunk of America–would be such a…ah, never mind. Slurs betrays my bad breeding.
The long and short of it, we had to cash out the Roth, and have a check cut, deposit the check, then have a bank check drawn up for the new place.
Wow. Just writing all that makes me tired.
At least it was a Roth and not a traditional IRA, in which they’d have deducted a large amount of tax when you cashed out, which you would have had to make up when you reinvested. Then you would’ve gotten to sort it all out come income tax time. Blech. Never again!
Roths are the way to go anyway.
True, though they tried to hang up the paperwork again because we didn’t indicate how much we wanted withheld for taxes. To which I said: “Roths are not taxable.” Apparentely news to Bunk of America.
IRA’s are complicated by their nature. I have a traditional one as well, and I shudder to think what would happen if I need that money before 62 ( or whatever the first penalty free distribution age is ).