What is an in-kind transfer?

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In-Kind Transfers

In-kind transfers in the Self-Directed world are like moving pre-IPO private stock, or a real estate property from one IRA to another. Rocket Dollar is currently offering in-kind transfers on select assets.

Cash rollovers and transfers are free of charge.

What is an in-kind transfer?

An in-kind transfer is when instead of selling out your assets to a specified amount of retirement cash, you keep the asset in your IRA and transfer it "in-kind" to another retirement account IRA or 401(k).

Do I get charged for moving retirement cash?

No. Rocket Dollar does not charge to move retirement tax-advantaged cash from one IRA to another IRA or a 401(k). Keep in mind your 401(k) custodian you are sending money from may charge to issue a check for a normal transfer.

Who can do an in-kind transfer?

Currently, in-kind transfers are primarily for clients with a direct custody account type; however, clients with an IRA w/ LLC or Solo 401(k) account interested in doing an in-kind transfer must purchase a gold account. Because of the high demand for in-kind transfers, all customers must submit the in-kind transfer waitlist form before they can start the transfer process. If you plan to transfer 10+ assets or have multiple custodians, please call our sales team for a quote.

Rocket Dollar does not currently support in-kind transfers of cryptocurrency, because most IRA custodians are not ready to safely send cryptocurrency with the high level of security that a crypto transfer requires.

Rocket Dollar is currently working on bringing public assets through in-kind transfers. Currently, all stocks, bonds, and other public securities must be sold to retirement cash before transferring.

If I can’t do an in-kind transfer, what should I do if I have other alternative assets in other self-directed IRAs?

When presented with all the options and the complexity of moving some of their assets, many customers decide to move forward with a Rocket Dollar checkbook IRA and transfer their cash balance, allowing the existing assets to redeem as they mature.

Is there any way I can avoid an in-kind transfer?

Rocket Dollar will never charge to transfer over retirement cash from another IRA Transfer or 401(k) Rollover. If it is possible to sell out of that asset and rebuy it in a new retirement account when your Rocket Dollar account is open, you can do so.

Be careful of prohibited transaction rules while doing this, as each selling and buying of the asset is a transaction event where you must be aware of prohibited transaction rules. 

What does the in-kind transfer process look like for other custodians?

Completing an in-kind transfer usually takes intense coordination between quite a few parties. You, your old IRA custodian, whoever has issued the investment asset, and whoever controls the titling of the investment. If one or more parties of the transaction are hesitant or slow to cooperate, the winning custodian has to spend a significant amount of time tracking down deliverables and through slower processes than moving retirement cash or traditional stocks, bonds, and mutual funds, which have significantly more established infrastructures to support the in-kind transfer of traditional assets. In order to safely move your assets, these processes must be followed to respect retirement account IRS regulations and avoid a prohibited transaction.

It's also much easier to move ONE IRA LLC (which may contain many investments underneath it) in kind than a direct custody IRA in many different assets.

Will Rocket Dollar help me transfer my IRA LLC if I decide to go to another custodian?

Of course. Just understand that this is an involved process that could take significant steps, with you tuning in and coordinating between both custodians and titling of the specific assets from investment issuers or real estate property deeds.

Gold Membership Requirement for LLC & Solo 401(k)

Transfers in a “Checkbook IRA” or Solo 401(k) are effectively a change of ownership where the deal issuer will need to be involved more often than not. Due to the level of difficulty in changing the asset’s ownership, our Gold-level membership is required as well as the account owner’s participation in obtaining the necessary signatures.

If you are moving real estate or other individually owned property (properties), please contact our sales team for a price quote. Real estate assets also present their own challenges, so we would need specific information in order to provide you with a quote.

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