Opening Your IRA
Funding Your IRA
Investing Your IRA
Ongoing Account Maintenance
How do I fund my new IRA with a contribution?
Contribution checks are made payable to “Madison Trust Company Custodian FBO [your name][your Madison account #]” and mailed to Madison Administration Company at One Paragon Drive, Suite 275, Montvale, NJ 07645.
How do I transfer my existing IRA to Madison Trust Company?
You will complete a Transfer Authorization form and attach a recent account statement from your current IRA Custodian. Madison will forward the Transfer Authorization form to your current IRA Custodian, who will perform a direct trustee-to-trustee transfer, whereby they’ll send a check or wire to your Madison IRA. Direct transfers are generally not reported to the IRS.
How can I expedite the transfer process?
Here are some things you can do to speed up the process:
How do I roll over an old 401(k), 403(b) or other retirement account to Madison Trust Company?
Plan Administrators require that rollovers be initiated by the Plan Participant. You will reach out to your current plan administrator and complete their rollover paperwork. You will specify that the funds are being rolled into an IRA so that the transaction is coded as a Rollover and not as a taxable distribution.
Your Plan Administrator will issue a rollover check to “Madison Trust Company Custodian FBO [your name][your Madison account number]”.
Some Plan Administrators do not send funds directly to IRA Custodians. If that is the case, then your Plan Administrator will mail the rollover check to you personally, and you will forward the check to Madison. It is important that you do not deposit the rollover check into your personal checking account.
Why did my transfer get rejected?
A transfer may be rejected for various reasons. Some common reasons for rejection include having to liquidate assets to free up cash to transfer or needing to provide a Medallion Signature Guarantee or an ink signature. You may have also entered an incorrect account number on the Transfer Authorization Form or have incompatible account types.
If you have any additional questions about your transfer rejection, please schedule a call with an IRA Account Specialist. Please also visit How To Transfer Funds to a Self Directed IRA: Step-by-Step Guide for tips to have a smooth and successful IRA transfer.
Can I transfer my Traditional IRA to a Roth IRA?
No, you cannot directly transfer Traditional IRA funds at one institution to a Roth IRA at another firm. A Traditional IRA can be transferred into another Traditional IRA or SEP IRA. A Roth IRA can only be transferred to another Roth IRA. Click here for the IRS’s Rollover Chart.
However, there is the option to convert your Traditional IRA into Roth IRA funds (also known as a Roth Conversion). When you convert your Traditional IRA funds to Roth IRA funds you must pay taxes on the amount converted. Once converted, your Roth IRA funds can grow and be taken out tax-free.
Can you transfer an IRA at any time?
Yes. A transfer is non-reportable and can be done an unlimited number of times during the year.
However, if you are completing an indirect rollover, that can only be done once in a 12-month period and is reportable on the federal tax return.
Do I have to report an IRA transfer on my taxes?
Since the money moves directly between custodians and is never placed in the accountholder’s hands, a transfer and direct rollover are non-taxable and non-reportable transactions.
However, an indirect rollover should be reported on your federal tax return. This is because you will be receiving the funds as a distribution before placing them into your other IRA. The distribution is reported on Form 1099-R and the rollover (deposit) is reported on Form 5498.
How long does an IRA-to-IRA transfer take?
Depending on your delivery process selection, Madison Trust will submit your transfer request to your current custodian within 3-4 days (standard processing) or 1-2 days (expedited processing). The timing of when we will receive your transfer is then dictated by your current custodian’s processing times and procedures. Please feel free to reach out to them directly for a status update.