Menu

Updated

How can I roll over my retirement account to Wealthfront if my other institution doesn’t support electronic transfers?

If your other institution can’t transfer your account through the industry-standard automated transfer process (ACATS), you can still roll over your account by completing a 60-day rollover.

To complete a 60-day rollover:

  1. Request a distribution from your other institution to your bank account.
  2. Once your funds are in your bank account, fund your Wealthfront IRA within 60 days. To move the cash from your bank to Wealthfront, log in to Wealthfront, click "Deposit Cash," and choose "Rollover Contribution.”

We do not calculate the 60-day period – that’s up to you and your tax advisor. When you complete the transfer to your bank from your other institution, you will receive a 1099-R from your other institution showing the distribution, and we’ll send you an offsetting 5498 tax form.  This transaction would need to be reported on your taxes but there should not be any other tax consequences as long as the funds are returned to a matching IRA type on time, and you do not do another one of these transactions in a rolling 12-month period. Please consult a tax advisor for additional information regarding your situation. If you are looking to transfer multiple accounts in this way please consult your tax advisor first.

For more information, please review this IRS link on the rollover process:

https://www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule

Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

This article is not intended as tax advice, and Wealthfront does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. Wealthfront assumes no responsibility for the tax consequences to any investor of any transaction. Investors and their personal tax advisors are responsible for how the transactions in an account are reported to the IRS or any other taxing authority.

Was this article helpful?