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Assume I have a traditional IRA, which I had previously rolled my 401(k) into. I now would like to transfer to another traditional IRA at another broker (Vanguard). Are there any tax implications to this, or will it simply be moving the finds from one IRA to another?

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    Make sure you move the money directly between custodians, i.e.: the check is not to you personally and the money never lands on your personal account. Otherwise there are implications. – littleadv Feb 5 '15 at 4:35
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    To add to what littleadv and JoeTaxpayer have already said, the best way to do this is to go to Vanguard and open an IRA with them (if you don't already have one there), and tell them you want to fund the IRA via a transfer from the current custodian. Vanguard will go get the money transferred over for you. Telling your current custodian that you want to roll over your IRA to Vanguard might well result in you getting a check for the entire amount with instructions to be sure to send the check on to Vanguard within 60 days. – Dilip Sarwate Feb 5 '15 at 15:01
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No issue. You are permitted to move like accounts (i.e traditional to traditional or Roth to Roth) directly with no tax issue. Problems can arise when taking possession of the funds in a 60 day rollover or when moving from traditional to Roth, the latter being a taxable event.

A comment from @Dilip_Sarwate is an important one and should be part of my answer -

Perhaps it is worthwhile to add that newly changed rules limit 60-day rollovers to one per year overall. It is no longer permissible to do a 60-day rollover from, say, one's Fidelity IRA to one's Vanguard IRA and also a 60-day rollover from one's ScottTrade IRA to one's Schwab IRA in quick succession; the money received from ScottTrade would be treated as a distribution, and any money deposited into the Schwab IRA (even if within the 60-day period) would be regarded as a new contribution, not as a rollover, and thus be subject to excess contribution rules etc.

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As long as you are tranferring from a Traditional Ira to another, there is no tax implication. It is considered a Transfer and non reportable to the IRS. If the firm issues you a check make sure it is made payable to the new investment firm, not you.

  • This really does not add much to what has already been said in earlier comments and answer. – Dilip Sarwate Feb 11 '15 at 21:11

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