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.
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 handle by the losing firm (your current custodian) and Rocket Dollar, who is accepting the funds, without the need for a third party.
Where to get a Medallion Signature
You can get a Medallion Signature Guarantee from a bank, savings and loan association, brokerage firm, 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).