Sending a wire transfer from an IRA held at an outside brokerage to your tastytrade IRA is generally the quickest way to transfer cash between IRAs held at different brokerage firms. A wire transfer between IRAs is not a taxable event, but the wire transfer does report to the IRS.
You may only transfer cash via wire transfer, so if you want to transfer cash and positions, then you must perform the account transfer via ACATS instead. However, you can still perform a cash transfer via ACATS as well. Furthermore, an ACATS transfer is generally a non-reportable (taxable) event. For more information transferring via ACATS, please click here.
Please read the instructions below carefully to prevent delays or tax complications.
TABLE OF CONTENTS
- Instructions for sending a wire TO a tastytrade IRA
- Instructions for sending a wire FROM a tastytrade IRA
- Will I receive any tax documents if I wire funds between IRAs?
Instructions for sending a wire TO a tastytrade IRA
Fill out an IRA Deposit Slip and request an LOA before sending the wire TO tastytrade
Before sending a wire from an IRA held at a different brokerage to tastytrade, you'll need to prepare the following four items ready before sending a wire to tastytrade:
- Have a like-IRA (Roth or Traditional) already open at tastytrade
- Initiate the wire to tastytrade from the sending firm.
- Fill out an IRA Deposit Slip
You can download and fill out an IRA Deposit Slip by visiting our Forms and Agreements page, by clicking here. Please complete the IRA Deposit Slip and select Transfer from Identical IRA within the Contribution Information section. Please send completed IRA Deposit Slips to email@example.com or by fax at 312-724-7364.
- Request a Letter of Acceptance (LOA) from tastytrade
You must request an LOA by writing to our banking team at firstname.lastname@example.org. Please include your most recent IRA statement and confirm the last three digits of your tastytrade IRA when reaching out to our banking team.
To prevent any tax complications when transferring funds between an outside IRA to a tastytrade IRA, you must provide the firm sending the wire a Letter of Acceptance (LOA). Providing an LOA before sending the wire will ensure that the distribution code aligns with the contribution code indicated on the tastytrade IRA Deposit slip.
Instructions for sending a wire FROM a tastytrade IRA
Fill out a Distribution Form and request an LOA before sending the wire FROM tastytrade
Before you send a wire from a tastytrade IRA to a like-IRA account held at a different brokerage, you will want to prepare the following three items.
- Have a like-IRA (Roth or Traditional) already open at receiving firm
- Fill out an IRA Distribution Form (for Traditional IRAs) or a Roth Distribution Form
You can download and fill out an IRA Distribution Form or Roth IRA Distribution Form by visiting our Forms and Agreements page, or by clicking here. Please complete the appropriate distribution form and select Transfer from Identical IRA and Transfer of Assets Between Brokers within the Type of Distribution section.
- Request a Letter of Acceptance (LOA) from the receiving firm
An LOA ensures that the wire tastytrade sends on your behalf will have the proper distribution code applied to the wire transfer. You will need to contact the firm receiving the wire to provide tastytrade with an LOA.
Please send your completed Distribution Form, Apex Clearing Third-Party Wire Form, and LOA to our accounts team at email@example.com or by fax at 312-724-7364.
To prevent any tax complications when sending a wire from a tastytrade IRA to a like-IRA held at an outside firm, you must provide tastytrade a Letter of Acceptance (LOA) from the receiving firm before sending the wire. Providing an LOA to tastytrade before sending the wire will ensure that the distribution code aligns with the contribution code you indicate at the delivering firm.
Will I receive any tax documents if I wire funds between IRAs?
When you send a wire TO a tastytrade IRA
When you wire funds to a tastytrade IRA, your IRA will receive IRS Form 5498, indicating your contribution to your tastytrade IRA.
When you send a wire FROM tastytrade
When you wire funds from a tastytrade IRA, your IRA will receive IRS Form 1099-R, indicating the distribution you made from your tastytrade IRA.
To view our Tax Document calendar, please visit the Tax Center.