February 2, 2019 at 11:34 pm #2234
I worked at hospital for 11 years and saved money from my paycheck into Fidelity Investment sponsored by the hospital into a 403b and 401a plan. I retired last year and decided to move my money from Fidelity to my credit union. Fidelity closed my accounts made out funds to my credit union for my benefit check in the mail to me. My credit union sent me 2 forms which stated this was a HSA to HSA rollover. This doesn’t sound right to me. First time I’ve heard of HSA. Is HSA another term to cover 403b and 401a?February 2, 2019 at 11:36 pm #2235
p.s. I am 67 yrs old, the 2 forms are supposed to be used by me to deposit the checks when I receive them next week from Fidelity.February 3, 2019 at 12:59 am #2236
An HSA is a health savings account, a totally different type of plan from the two you mentioned. Sounds like the CU made an error here. Do you have a 1099R Forms from Fidelity yet? How does the amount distributed compare to the amount on the CU form?February 3, 2019 at 12:59 am #2237
It sounds like the credit union is confused. HSA is a health savings account, but you say you have 403b and 401a, which are retirement accounts. Maybe the credit union got mixed up because the employer was a hospital. Contact the credit union to obtain the correct form. You’re rolling money from a retirement account to an IRA, not HSA to HSA.February 3, 2019 at 1:49 am #2238
As this is not my area of expertise, I thank you both for your prompt replies confirming HSA is not correct and my credit union made a mistake. Credit union closed for the weekend. The 403b and 401a plans are what is listed on my quarterly statements from Fidelity. Have not received 1099 from Fidelity yet but am not expecting 1099 until next year. Will not use the HSA deposit forms from my credit union. Many thanks again for your support and relief from worries. Been pacing about til I got your replies. Will wait til Monday and call the credit union and ask them to reissue correct deposit forms. Big Whew and many thanks again. Best regards. MelodyFebruary 3, 2019 at 6:42 pm #2240
This is not fully resolved yet. Sounds like you have not even received the rollover checks from Fidelity yet. When you get them be sure they are made out to your CU FBO your IRA account. Maybe the forms you received from the CU are just deposit slips for an HSA rather than an IRA. You may need to have them send you the correct deposit slips.
You are correct that the IRA rollover 1099R will not be issued for another year. Once you rollover money is deposited with the CU, you should verify with them that the deposit was made to your IRA. I would not wait for a quarterly statement.February 4, 2019 at 1:49 am #2242
When I decided to move my money over to the credit union (“CU”), the CU rep admitted she was not familiar with what a 403b and 401a. I was concerned reading somewhere that you were only allowed one rollover a year. Fidelity said that couldn’t be true because he had just helped someone rollover 10 accounts recently. I believe the credit union rep asked someone on her end and said that was true except for cases when the account was sponsored by a health organzation. So with that, I told Fidelity to close the accounts and the CU rep told Fidelity to make the checks out to the credit union on behalf of my name. The forms she sent me indicated it a HSA to HSA transfer to an IRA account in my name. It said HSA contribution at the top of the form. So my question is, are my 403b and 401a accounts (per Fidelity quarterly statements) considered some kind of IRA accounts? Is there a rule about one rollover a year? Thanks.February 4, 2019 at 11:54 am #2243
Melody, I’m a bit concerned that you’re dealing with a CU rep who lacks even the most basic knowledge that should be required of anyone handling this type of transaction. You should be okay, though, if you confirm the following:
First (as Alan pointed out), the checks were issued payable to your credit union for the benefit of your IRA. That’s important so you have a direct rollover that isn’t subject to withholding. Based on your most recent message, it sounds like that is what happened but this should be confirmed.
Second, the checks need to be deposited in an IRA, not an HSA.
This type of rollover is not subject to the rule limiting you to one rollover per year. The reason has nothing to do with having an account sponsored by a health organization. You are moving money from an employer plan to an IRA, and that type of transaction doesn’t count as a rollover for purposes of the one-rollover-per-year limit.February 4, 2019 at 5:05 pm #2245
I just got off the phone with the CU rep. She apologized and said she sent me the wrong forms and to throw them out. She then partially filled out a new form that said IRA Contribution and Investment Selection at the top and emailed them to me. I printed out 2 copies. She selected Rollover as the Contribution type. In parentheses, it said “Distribution from Traditional IRA,….or eligible employer-sponsored retirement plan that is being deposited into this Traditional IRA.” I’m depositing the money into my existing IRA marketedge account so I hope that’s ok. Just waiting for the checks to arrive this week from Fidelity. Much thanks for your prompt reply and support and guidance.
MelodyFebruary 5, 2019 at 7:02 am #2258
Update – Got the Fidelity checks this evening. They are both Pay to the order of: My credit union..”TR IRA FBO:” my full name and address follows. Everything seems to be in order just as you laid out above. Plan to deposit them tomorrow using the IRA forms she emailed me this morning. Almost there. Tomorrow is Chinese New Year so wishing you a Happy Chinese New Year.
best regards, Melody.February 5, 2019 at 4:05 pm #2259
Good. Sounds like everything is in order now. But always verify that the deposit was made correctly to your TIRA. No reason that both employer plans could not be rolled into a single IRA, but if you are going to purchase CDs (share certificates), you might end up with a separate TIRA account for each one. Remember the one rollover limitation per 12 months if you ever move these funds to a different custodian. Best to use non reportable transfer instead of distributions when that time comes.February 5, 2019 at 5:02 pm #2260
I think in the past when I opened a CD they created not a new TIRA, but just added a new suffix number to the existing TIRA for it. But even if they did as you say created a new TIRA, will that create any issues to be considered?
Melody?February 6, 2019 at 4:15 pm #2267
No major issues, but if you ever want to change custodians for any reason such as better interest rates, you would have to move them all by direct transfer. You can only move ONE by 60 day rollover. Also, if these are treated as separate IRA accounts, be sure you have named your beneficiary on each of them.February 12, 2019 at 6:15 pm #2301
Sorry for late in response. I have successfully moved my retirement account from Fidelity to my credit union. However, don’t recall filling out a beneficiary form. Will follow up on that. Thank you very much for taking the time to respond and help me. Much appreciated. Wishing you all a very Happy Chinese New Year.
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