Funding Your IRA
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.
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.
Here are some things you can do to speed up the process:
- Provide a clear copy of the Transfer Authorization form with all required fields completed. Please do not submit a picture of the form as your outgoing custodian may reject it.
- Select “Wire” instead of “Check”. This will speed up the process significantly as you will avoid delivery and check clearing time.
- Select Expedited Processing. Your transfer request will be sent to your current IRA custodian within 2 business days instead of the standard 4 business days.
- Contact your current IRA custodian to liquidate your account so that there is sufficient cash to accommodate the transfer request (if applicable).
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.