While all transfers start and end with your new custodian, the releasing (or old) custodian has a significant role to play in ensuring the process goes smoothly

Stay in touch with both firms involved throughout the process to make sure both are giving the proper attention to your transfer request

Even though Choice accepts digital signatures, some releasing custodians still require an original “wet” signature on our transfer form in order to proceed with the transfer

Some custodians also require DocuSign signatures vs Dropbox Forms electronic signatures, (ex Fidelity/NFS)

Several custodians require a medallion stamp guarantee, we may be able to obtain for a nominal fee and if under a certain value

For Choice, you should use the Account Transfer form

If requesting a rollover from a 401(k) or other qualified plan, the Account Transfer form should not be used. A Letter of Acceptance can be provided to the client to initiate the rollover with the plan or custodian.

A simple error or omission could halt the process right out of the gate.

Some firms will not accept third party liquidation instructions and will reject the paperwork and ask that you call to verify/initiate liquidation

New or updated paperwork is typically required with an updated signature and date once the liquidation has taken place, so, if applicable, we prefer that transferring clients liquidate any assets before submitting the transfer request

If you indicate on the transfer form that you have a like account with the releasing firm (ex Traditional IRA to Traditional IRA) but in fact have an account type that cannot transfer directly into your new account, we cannot process the transfer (ex Traditional IRA to Roth IRA)

This is one reason we request a copy of the client’s most recent account statement, as oftentimes we are able to catch those issues before the request is submitted

If the amount listed is not currently available in cash, you must indicate which asset(s) you wish to have liquidated on the form

Be sure to mark “Transfer As Cash” under Section 3 of the Account Transfer form

If requesting a partial amount of cash, enter that amount in Section 3 of the Account Transfer form under “Quantity to Transfer”

You may have a termination fee or processing fee to take care of, and there may not be enough cash in the account to cover those fees and transfer the requested amount

You will want to reach out to the current custodian in regards to any pending fees and payment

For example, if you’ve married or divorced since you opened the account at the releasing firm, your Choice account reflects your new last name; often clients overlook the fact that the name wasn’t changed on the old account

Once the request is rejected, we typically have to resubmit the paperwork with a copy of the legal name change document (i.e. divorce decree, marriage certificate, etc.)

Asset names must be listed in Section 3 of the Account Transfer form under the “Asset Description” section

A current account statement must be provided that shows the asset, value, and units

Be sure to mark “Transfer In-Kind” under Section 3 of the Account Transfer form

Some assets can take up to 30 business days to complete re-registration and be placed in your account

Some re-registration may require signatures and additional information from the client

There can be delays if the releasing custodian does not follow directions provided with the Account Transfer form while sending electronic assets