Skip to content
GeoDataVision
Thread Options
#1286447 - 11/13/09 08:37 PM ?? check payable to "Bank IRA f/b/o individual"
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
It's been awhile since I've worked in a branch so maybe things have changed. If the bank receives a check -obvious 401K/IRA account transfer- with the payee shown as "Our Bank IRA f/b/o named individual" is it ok to deposit that account into a business account titled "Whatever Retirement Planning" or something similar to this? In my day the check would be deposited into an IRA in the individual's name. I've seen this more than once recently and am concerned. I do work in bank compliance just not deposit compliance.

Return to Top
Deposits and Payments
#1286779 - 11/15/09 01:34 PM Re: ?? check payable to "Bank IRA f/b/o individual" nemsi
nbk2yj2 Offline
Platinum Poster
Joined: Aug 2006
Posts: 629
Paradise!
This would certainly appear to be either a direct rollover from a qualified plan or direct transfer from an IRA. In either case i don't understand why this would go into a business account. Doesn't make sense.

Return to Top
#1286780 - 11/15/09 01:55 PM Re: ?? check payable to "Bank IRA f/b/o individual" nbk2yj2
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,898
Galveston, TX
Unless a bank officer signed off on the check, it may likely come back for endorsement problems within the next year. I agree with NBK - this was likely destined as a direct roll-over and was not handled properly. This should have been deposited into an IRA and then if the customer wanted to transfer the money to "Whatever Retirement Planning", it should been processed appropriately as a rollover or distribution from the bank's IRA.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1286986 - 11/16/09 04:34 PM Re: ?? check payable to "Bank IRA f/b/o individual" rlcarey
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
Thanks for responding. BTW Randy, a bank officer did endorse the check and then it was deposited into the business account! I think that the bank should have required the customer to open an IRA account!

Return to Top
#1288176 - 11/17/09 08:24 PM Re: ?? check payable to "Bank IRA f/b/o individual" nemsi
Aggs Offline
Diamond Poster
Aggs
Joined: Nov 2009
Posts: 1,331
Hoosier Country
I think this is an instance where the business account owner ("Whatever Retirement Planning") has to appropriately account for receiving the funds. I have seen this before. It is a direct rollover of the person's IRA, but he/she has chosen to invest it with "Whatever Retirement Planning" who will be the administrator. Since they are not a bank or a FI, they have a business account at a bank where such deposits can be made. The receive a deposit to benefit the investor and it's up to them to invest it properly into another IRA product (sounds like a brokered deposit deal to me). It's also up to the IRA owner to ensure that the rollover was done correctly. Everything is reported and the IRA money has to be deposited into another IRA within 60 days of the rollover. If it is not, the IRA owner will have to pay a LOT of taxes and penalties.
_________________________
CRCM + CAMS = certified compliance nerd

Opinions expressed in these threads are my own and not my employer's.

Return to Top
#1288206 - 11/17/09 08:38 PM Re: ?? check payable to "Bank IRA f/b/o individual" Aggs
nemsi Offline
Gold Star
Joined: Nov 2005
Posts: 383
Thanks mauraga. That sounds logical to me. I appreciate all the responses. Thanks for taking time to respond.

Return to Top

Moderator:  John Burnett