Funding Methods and Timelines

What you'll find on this page:

The type of account you open and the source of your funding will help determine the appropriate funding method for the account.

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Funding methods

In-kind transfer

An in-kind transfer is the transfer of assets from an existing IRA to another like IRA. Note: PENSCO Trust may not accept all assets in your current IRA. In which case, you will need to liquidate (sell) those assets. In some cases, certain assets can't be liquidated (such as private equity assets). Check with your current IRA custodian. For those assets which qualify for an in-kind transfer, you will need to supply the required documentation for each asset that you are transferring. This process may delay the receipt of the assets by PENSCO.

In-kind direct rollover

This method is used when you are moving from a qualified non-IRA plan (e.g., 401(k), profit sharing plan, 403(b), etc.) and rolling it over into an IRA. An in-kind direct rollover is the direct movement of non-cash assets from that eligible plan into an IRA. Moving the funds directly from an eligible plan to an IRA will avoid present tax withholdings.

Note: PENSCO Trust may not accept all assets in your current IRA, in which case, you will need to liquidate (sell) those assets. In some cases, certain assets can't be liquidated (such as private equity assets). Check with your current IRA custodian. For those assets which qualify for an in-kind transfer, you will need to supply the required documentation for each asset that you are transferring. This process may delay the receipt of the assets by PENSCO.

Cash transfer

This method is when you authorize the transfer of cash from your existing IRA to another IRA. A transfer is the direct movement of IRA cash funds from one IRA custodian to another, without the accountholder (or death beneficiary) taking a distribution. Use this method when transferring cash from one IRA to a like IRA such as an IRA to PENSCO IRA, SEP-IRA to PENSCO SEP-IRA, or Roth to PENSCO Roth. A transfer is not a reported taxable event; therefore, you may use this method any number of times. We, as the receiving custodian, will request the funds from the current custodian on your behalf as the accountholder.

60-day cash rollover

This option typically expedites the movement of funds between IRA accounts and allows an IRA owner 60 days to return distributed IRA funds to an IRA without tax or penalty. However, you may only perform this 60-day rollover once per 12-month period per account. Your current custodian should be able to provide you with a distribution check within a few days of your request for distribution.

Note: you must return the funds into an IRA within 60 days or it will be considered an early distribution if under 591/2 and you will have to pay taxes and penalties.

Cash direct rollover

A direct cash rollover is the direct movement of funds from an eligible non-IRA plan (such as a 401(k) plan, profit sharing plan, etc.) into an IRA. Moving the funds within 60 days directly from an eligible plan to an IRA will avoid a taxable event.

Roth IRA conversion

You can fund a Roth IRA with funds from a non-Roth account. In the process, you will need to pay taxes on those funds based on your current income tax rate.

In-kind transfer/rollover requirements kit

Use these lists of requirements when transferring existing assets to PENSCO Trust 'in kind' (i.e., not liquidating them and transferring as cash) from another custodian.

Timelines for funding your new account or plan

The time it takes to complete the funding of a new PENSCO account through a transfer or rollover of an existing account varies depending on several factors.

The most common factors are:

  • Funding method
  • Source of the existing account
  • The policies of your current custodian
  • The types of assets currently in the account

The timeline goes into effect from the time your current account administrator and PENSCO Trust Company receive all required documents.

The table below is a guideline as your individual situation may impact when your funding will complete. Again, the type of account you currently have determines what funding methods you can use to fund your new account.

Average timelines for funding a new account

Original account type New PENSCO account type Funding method Time to complete funding (in business days) Notes
Traditional IRA Traditional IRA 60 calendar day cash rollover About 5 days You can only perform this kind of rollover once per 12-month period per account
Traditional IRA Traditional IRA Cash transfer 10 to 30 days Check with your current IRA administrator for processing time
Traditional IRA Rollover IRA In-kind transfer 10 to 30 days Not all assets may be accepted
Roth IRA Roth IRA Direct cash rollover About 5 days
Roth IRA Roth IRA Transfer 10 to 30 days Check with your current IRA administrator for processing time
SEP-IRA PENSCO SEP-IRA 10 to 30 days
Qualified non-IRA plan or SEP-IRA Rollover IRA or SEP-IRA Direct rollover 10 to 30 days Check with your current plan administrator for processing time
Qualified non-IRA plan or SEP-IRA Rollover IRA or SEP-IRA In-kind direct rollover 10 to 30+ days Check with your current plan administrator for processing time
Qualified plan with a previous employer, IRA (non-Roth), or SEP-IRA Solo(k) plan Direct rollover 10 to 30+ days

Check with your current plan administrator for processing time

Use the Solo(k) rollover form
Solo(k) Solo(k) plan Rollover 10 to 30+ days

Check with your current plan administrator for processing time

Use the Solo(k) rollover form

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