Author Topic: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club  (Read 6267 times)

SeattleSun

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New feature article on Lend Academy
.
How to Rollover a 401k or IRA to Lending Club and Prosper
http://www.lendacademy.com/401k-ira-rollover-lending-club-prosper/


Therefore this feature article is very timely and relevant because I was just considering a "Direct Transfer" of a "Roth IRA" to Lending Club.

Just looking for any advise on potential pit falls, etc.

A $55k "Roth IRA" will be coming out of TDAmeritrade via a "direct transfer".

 Seems Lending Club’s preferred custodian "Self Directed IRA Services, Inc."  Any comments on these guys?  TIA

Also seem a new IRA account bonus is in effect now.

All previous accounts have been with Prosper so this will be our first LC account.

TIA

SeattleSun










Fred93

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #1 on: March 30, 2016, 01:58:56 PM »
Seems Lending Club’s preferred custodian "Self Directed IRA Services, Inc."  Any comments on these guys? 

The process took several days, but after that no problem.  I never have to deal with SDIRA at all.


Quote
All previous accounts have been with Prosper so this will be our first LC account.

Welcome to the pool.  The water's fine.

jennrod12

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #2 on: March 30, 2016, 02:01:30 PM »
I recently did this, it's relatively simple but it takes a while for the funds to get transferred, figure on 2-3 weeks.

$55k seems like a lot to transfer at one time to me, because with my filters that would take a long time to invest, leaving cash idle.  I do it in bursts.  Depending on your filters, you might have a different experience.

Jenn

lascott

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #3 on: March 30, 2016, 03:05:14 PM »
BritishJim had a really nice and descriptive post here that included SDIRA information (pulling money out).

http://www.lendacademy.com/forum/index.php?topic=3676.msg32766#msg32766
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Rob L

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #4 on: March 30, 2016, 06:53:57 PM »
I did the same when starting with LC and later adding to my account. No problems at all.
It seemed backwards to me, and I almost messed it up big time.
You open the account with SDIRA (your LC IRA account custodian) then they request a "direct transfer" from your current custodian.
If I remember you have to mail in a form to SIDRA with a photocopy of your driver's license for ID?
Must be cash. May be partial or the full amount. It does take a while.
Mine was traditional, not Roth, but should be the same process I think.
Good luck & welcome to LC!

SeattleSun

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #5 on: March 30, 2016, 07:08:53 PM »

$55k seems like a lot to transfer at one time to me, because with my filters that would take a long time to invest, leaving cash idle.  I do it in bursts.  Depending on your filters, you might have a different experience.

Jenn


1)  Was thinking of using Lending Robot or other 3rd party vendor to get the funds invested as quickly as possible.

2)  Plus I wanted the $1,000 bonus money for >$50k new IRA account with LC.  I like free money.    :) :) :)

http://www.lendacademy.com/401k-ira-rollover-lending-club-prosper/

nonattender

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #6 on: March 30, 2016, 07:11:29 PM »
Has anyone had any experience with a Solo 401(k) at LendingClub?  It's not listed on their site and I've never seen anyone mention that.

ETA:  For that matter, what about HSA's with LendingClub?  Is that possible somehow?
« Last Edit: March 30, 2016, 07:51:01 PM by nonattender »
A little nonsense now and then is relished by the wisest men.

Rob L

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #7 on: March 31, 2016, 03:37:30 PM »
$55k seems like a lot to transfer at one time to me, because with my filters that would take a long time to invest, leaving cash idle.  I do it in bursts.  Depending on your filters, you might have a different experience.
Jenn

1)  Was thinking of using Lending Robot or other 3rd party vendor to get the funds invested as quickly as possible.

2)  Plus I wanted the $1,000 bonus money for >$50k new IRA account with LC.  I like free money.    :) :) :)


Note the fine print regarding the bonus offer:

Quote
This offer is valid for either (a) new Lending Club IRAs that 1) are opened by April 30, 2016 and 2) have new funds transferred and invested by June 30, 2016 or b) existing Lending Club IRAs that have new funds transferred and invested by June 30, 2016. The amount of any bonus will be determined based on both the amount of new funds transferred from external accounts and the amount of those funds invested by June 30, 2016.

If it comes down to it you might have to load up on low risk A's and B's at the end to make the deadline.
If so I'd do that using LC's auto invest and avoid paying 3rd party fees just to purchase low risk notes.

nonattender

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #8 on: March 31, 2016, 07:48:18 PM »
Has anyone had any experience with a Solo 401(k) at LendingClub?  It's not listed on their site and I've never seen anyone mention that.

ETA:  For that matter, what about HSA's with LendingClub?  Is that possible somehow?

Hmm.  They read my mind; added another asset custodian:

http://www.prnewswire.com/news-releases/lending-club-joins-the-millennium-alternative-investment-network-main-300243751.html

So, that'll get the Solo 401(k) able to invest in LendingClub.

Anyone have any ideas on how to shoe-horn HSA funds in?
A little nonsense now and then is relished by the wisest men.

RyanL

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #9 on: April 01, 2016, 03:25:42 PM »
Has anyone had any experience with a Solo 401(k) at LendingClub?  It's not listed on their site and I've never seen anyone mention that.

ETA:  For that matter, what about HSA's with LendingClub?  Is that possible somehow?

Hmm.  They read my mind; added another asset custodian:

http://www.prnewswire.com/news-releases/lending-club-joins-the-millennium-alternative-investment-network-main-300243751.html

So, that'll get the Solo 401(k) able to invest in LendingClub.

Anyone have any ideas on how to shoe-horn HSA funds in?

This is a great point, we might have to dig into this to see if it is possible!

RyanL

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #10 on: April 04, 2016, 04:30:28 PM »
Has anyone had any experience with a Solo 401(k) at LendingClub?  It's not listed on their site and I've never seen anyone mention that.

ETA:  For that matter, what about HSA's with LendingClub?  Is that possible somehow?

Hmm.  They read my mind; added another asset custodian:

http://www.prnewswire.com/news-releases/lending-club-joins-the-millennium-alternative-investment-network-main-300243751.html

So, that'll get the Solo 401(k) able to invest in LendingClub.

Anyone have any ideas on how to shoe-horn HSA funds in?

Just to follow up on this. I did contact Millennium Trust and they no longer offer HSA custody as they discontinued this a few years ago. Bummer!

nonattender

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #11 on: April 05, 2016, 06:47:39 AM »
Yeah, the best I've been able to find for HSA funds is a joint that would let me push them into a TD Ameritrade brokerage account...

If anyone happens to run into a self-directed (or otherwise) custodian which allows investment into LC or other alts, please post it.
A little nonsense now and then is relished by the wisest men.

CharlesM

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club FEES
« Reply #12 on: September 12, 2016, 01:35:26 PM »
Getting into a Lending Club IRA was no problem.  As others have indicated it took some time, but all worked out. 

Now moving money from your account to another company account, say an IRA Millennium account for Prosper,   is an eye opening experience concerning time and fees.  For me to transfer $6000 from Self Directed Services to Millennium cost $50 for what they call a partial termination fee.  This fee is charged each and every time you move from Self Directed Services directly to another company.  On September 1, 2016 this fee went up to $100.  So, each and every time you move money from one company to another you will now be charged $100.  I am guessing this is being done to slow any money moving out.
 
The only way around this fee that I have found is to have Self Directed Services do an ACH to your bank account and then you send the money on to Millennium.  You can only do this once a year or you have IRS issues. 
 
Good luck to all!

lender90530

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #13 on: September 12, 2016, 04:26:11 PM »
Self Directed IRA Services Inc.: easy to a direct transfer in; expensive to do a direct transfer out.

It costs $100 to do a custodian to custodian partial transfer of cash out of Self Directed IRA Services Inc. to another custodian, and $250 to close your Self Directed IRA Services Inc. account.

Here is a link to their latest fee schedule effective September 1, 2016:

https://quikforms.com/viewform/zpWO-MeLbKwAm

yojoakak

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Re: Considering a "Direct Transfer" of a "Roth IRA" to Lending Club
« Reply #14 on: September 12, 2016, 04:37:26 PM »
Can't you just take the distribution to your checking account?

As long as you deposit the same amount to another IRA within 60 days you don't have to pay taxes on it.

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions