In-kind transfers in the Self-Directed world are like moving private stock a real estate property from one IRA to another. Cash rollovers and transfers do not receive an extra charge.
What is an in-kind transfer?
An in-kind transfer is when instead of selling out your assets to a specified amount of cash, you keep the asset in your IRA and transfer it "in-kind" to another retirement account IRA or 401(k). When you are finished, your Rocket Dollar IRA will own the asset instead of your old IRA. You will retain all the tax benefits on your asset.'
Do I get charged for moving cash?
No. Rocket Dollar does not charge to move 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.
What kind of account do I need if I want to transfer an alternative asset?
At this time, you MUST have your account set up from the beginning in a fashion to accept in-kind transfers with our custodian partner.
Please let our sales team know ASAP at 855-762-5383 before purchasing. We must know this before account fulfillment.
Rocket Dollar Gold is $600 to sign up and $30 a month.
How much does an in-kind transfer cost?
If Rocket Dollar has to do a full in-kind transfer process on an asset...
The fee will be $200 per asset. Rocket Dollar has reduced the fees in this area.
This applies once for each type of asset. If you transfer 10,000 shares of a private stock for example, that is one asset fee of $200. If you transfer 10,000 shares of one asset and then one LLC that owns two real estate properties, that is $400.
If you transfer three separate properties in three separate LLCs, that will be three asset charges.
So what are all the fees?
- $600 Gold account signup (one time)
- $200 per -in-kind transfer (one time during in-kind transfer process)
- Cash rollovers (no charge)
- Recurring and new per Investment fees: We have two custodian partners. Certain customers might qualify for no per-investment fees. All other customers will pay $200 per additional investment plus $100 annual per investment.
What does the in-kind transfer process look like? Why am I charged this much to do one?
To complete an in-kind transfer, it usually can take 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, our support team 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 regulation and avoid a prohibited transaction.
Other custodians sometimes charge up to $1000 per asset transfer. We understand a $400 fee is not ideal, but it is necessary to make sure our service team can adequately serve customers who need help on a time-intensive transfer process.
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. If we only have to move one IRA LLC, we will only need to charge one asset fee.
For the transfer of private stock, this could include our support team helping you talk with the company the stock was issued from in coordination with your old custodian.
For the transfer of a real estate property, this could include our support team helping you talk with the property deed and titling, a lender if a non-recourse loan is out on the property, and your old custodian.
Is there any way I can avoid this fee?
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.
Can I in-kind transfer Crypto?
Sorry, not at this time. You are able to roll over fiat cash, and then purchase coins from an exchange or private seller, which you can then use for a whole variety of trading or investments for your IRA LLC.
We have to work with specific custody partners on bringing over crypto in-kind, and currently, our custody partner that we use for these more complex transfers does not accept crypto investments.
Someday, we hope to bring this feature for our cryptocurrency retirement investors.