Rollover IRA check question

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I have a rollover IRA check from my last job that is made out FBO Vanguard...I never deposited it to Vanguard because I had only intended to open up this Vanguard IRA account at the time I left my job but never followed through.

Now that I am in grad school I would rather pay the 20% and deposit it in my checking account..its only $450. They recently reissued me the check because it was stale, I had mentioned to the lady who reissued it that I would rather have the check made out directly to me..however when I received the check today it was once again made out FBO Vanguard.

If I cross out FBO Vanguard on the check and deposit it in my checking account, and say the teller doesn't question the mark out, will there be any repurcussions besides the fact that I will pay the 20%?

Hope that makes sense.

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Well, when you asked for the check originally you probably asked for it as a rollover.

The old plan must know whether you are rolling (write out the whole thing) or withdrawing it, I'm *guessing* they are then required to withold taxes then give you the check.

So, worst case, is the government could think you are committing fraud and charge you with a crime. Then you get to pay attorneys, fees, etc.

Best thing would be to just call and ask them about doing it right ...

The check isn't FBO Vanguard, it's to Vanguard as trustee of an IRA FBO you (at least if they've done it correctly). You're not Vanguard so you can't cash that check. The fastest way to get your hands on the money is to give it to Vanguard and then withdraw the money. Or you could return it and request that they send a check directly to you.

Whatever you do, the full $450 is going to be taxable to you, plus you'll pay an extra 10% of it as a penalty (unless you've over 59 1/2, which I'm not guessing from your name). That's an awfully expensive way to get some cash in your pocket. It's not a ton of money -- if you're in a low bracket, it may end up only costing you $100 out of the $450 -- but, then again, it doesn't get much cash into your pocket either.

treesaw87 said: [Q]
If I cross out FBO Vanguard on the check and deposit it in my checking account, and say the teller doesn't question the mark out, will there be any repurcussions besides the fact that I will pay the 20%?
If you cross out the dollar amount and write in a higher number and the teller doesn't notice it, will there be any repurcussions?

frootmall said: [Q]treesaw87 said: [Q]
If I cross out FBO Vanguard on the check and deposit it in my checking account, and say the teller doesn't question the mark out, will there be any repurcussions besides the fact that I will pay the 20%?
If you cross out the dollar amount and write in a higher number and the teller doesn't notice it, will there be any repurcussions?

LOL



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