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What is a direct transfer and how do I initiate one?

A direct transfer moves funds or assets directly from one IRA custodian to another. Because the funds or assets are transferred institution-to-institution, the account owner never takes possession of the funds or investments.

One of the primary advantages of a direct transfer is that it is generally not taxable and is not reported to the IRS as a distribution. Direct transfers also avoid the IRS 60-day rollover rule and potential taxes or penalties associated with indirect rollovers.

Transfers may be completed in cash or, if eligible, as an in-kind transfer of existing investments.

How to initiate a direct transfer?

If you do not already have a STRATA account, you will first need to open your account. You may initiate the transfer request during the account opening process.

If you already have a STRATA account, submit STRATA’s IRA Transfer Request form. You will need:

  • Accountholder name (as it appears on the current IRA)
  • Current custodian account number and account type
  • Name and contact information of the current custodian

⚠️ Important:

If your current custodian does not accept electronic signatures, please submit the PDF version of the IRA Transfer Request form.

Some custodians may also require your signature to be Medallion Signature Guaranteed before processing the transfer. If required, this guarantee can typically be obtained through your bank or brokerage firm.

How long does a direct transfer take?

Most direct transfers are completed within 10–14 business days, although timing depends on the current custodian’s processing procedures. Processing may be expedited through:

  • Wire transfers
  • Overnight delivery
  • Fax processing (if supported by the current custodian)

Important considerations

If transferring assets in-kind (non-cash assets), the investment must be eligible for custody with STRATA. Additional onboarding documentation is required for all new investments.

Publicly traded securities require a brokerage account that permits a third-party custodian arrangement.  Please refer to the appropriate investment checklist on our Onboard My Investment page for specific requirements. 

 

Additional resources

For more information about direct transfers, visit Fund My IRA.