A medallion signature is the highest requirement to initiate a retirement fund transfer. The guaranteeing company acts as insurance to protect the funds in transit. Rocket Dollar has started a partnership with ESignature Guarantee to assist customers.
What is a Medallion Signature?
A medallion signature guarantee is a guarantee by the transferring financial institution that the signature is genuine and the financial institution accepts liability for any forgery. A medallion signature guarantee protects shareholders by preventing unauthorized transfers and possible investor losses. A medallion signature guarantee also limits the liability of the transfer agent (losing custodian) who accepts the certificates.
What do I need to know about them?
Your current IRA custodian may require a Medallion signature. Merril Edge is a common requester of Medallion signatures for transfers over $50,000.
Rocket Dollar's support team and our IRA custodian partner meet your current IRA custodian's transfer request requirements in order for them to process and send your IRA funds to your new Self directed IRA custodian.
Are these necessary for every retirement transfer?
No. A medallion signature guarantee has faded in popularity as retirement transfer systems have continued to advance and modernize.
Usually, the transfer process can be handled by the losing firm (your current custodian) and Rocket Dollar, who is accepting the funds, without the need for a third party.
Some firms will require these for large or unique transfers, as it helps protect them from liabilities during the transfer.
Where to get a Medallion Signature
Rocket Dollar has started a partnership with ESignature Guarantee and highly recommends going to them first. They have a fee of $150 per transfer and a discount of 10% using the code ROCKET. They can support transfers up to $500,000
Many Rocket Dollar customers without a high net worth relationship with a brokerage firm or bank have had trouble getting a Medallion Signature. In 2023, many banks find the process a time-consuming or expensive hassle to support all customers and restrict it to those who have significant assets or a relationship over six months with the firm. Going and working with an online-focused business like ESignature Guarantee will save you time from driving and calling around to local financial institutions.
You can get a Medallion Signature Guarantee from a bank, savings and loan association, brokerage firm where you might have a relationship with a financial advisor, or credit union where you’re already a customer, according to the SEC. More than 7,000 U.S. and Canadian financial institutions participate in the Securities Transfer Agents Medallion Program (STAMP).