Author Topic: STRATA check distribution and fee and resulting 1099-R  (Read 261 times)

lascott

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STRATA check distribution and fee and resulting 1099-R
« on: July 13, 2019, 08:19:08 PM »
Helping my son exit from LC with his ROTH IRA and get it to a Vanguard ROTH IRA.  Wow, it has taken 2.5 months dealing with LC and STRATA. Many emails and confusing questions about different forms or them missing ... and me forwarding the emails with the forms already sent and previously acknowledged.  It looked like a pain to get a direct custodian to custodian transfer to get to Vanguard with a Master Notary Signature (vs standard one). With Fidelity I can just go to the branch offices.  THUS we had them send a check which we will deposit into a Chase savings acct that is already set up to my son's Vanguard account.

Anyway, my quick question is the $50 fee that STRATA charges is just lost ROTH IRA money. Meaning STRATAs 1099-R that they will send my son will only be the the total distribution check and not the total+$50 fee?   It seems like one would have the option of paying the $50 fee with a credit card or something else so you could keep that $50 in the ROTH IRA.


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storm

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Re: STRATA check distribution and fee and resulting 1099-R
« Reply #1 on: July 14, 2019, 02:37:05 AM »
I did a partial transfer in May.  Within my LC account, I withdrew the funds to Strata.  I filled out the transfer forms on Vanguard's website, printed them out, and mailed them off without being notarized.  About a week later, Strata said they mailed the check to Vanguard.  Vanguard shows they received it a week later, and then it was another week before the funds were available for investing.  Took about a month in all.  Fee for partial transfer was $25.  Not sure how that affects taxes.  I'm thinking it probably won't.