Transferring Your IRA

An ACAT transfer is a process for moving assets directly from one brokerage firm to another. For IRA accounts, this involves transferring your IRA assets between financial institutions like Webull without the need for you to withdraw and redeposit the funds, unlike an indirect rollover.

Some of the benefits of transferring an IRA via ACAT include:

1. Simplified process: An ACAT transfer is typically more streamlined than a rollover. The transfer is handled directly between Webull and the contra institution, meaning less work for you.

2. Avoids withholding taxes: Unlike rollovers, where you may have to manage and replace any tax withholding, ACAT transfers are generally tax-neutral and avoid issues related to withholding.

3. No tax penalties: An ACAT transfer does not trigger any tax consequences or penalties, as the funds remain within the tax-advantaged IRA account throughout the whole process. In contrast, a rollover might be subject to tax implications if not completed correctly.

4. Faster processing: ACAT transfers are typically completed within 5-7 business days, unlike a rollover which can take 7-10 business days.

5. Reduced risk of errors: Since the transfer is executed directly between institutions, the risk of making errors or missing deadlines, which can occur with rollovers, is minimized.

6. Less paperwork: ACAT transfers will not generate IRS Form 1099-R for distributions or Form 5498 for contributions.

To learn more about ACAT transfers and how to initate one, please visit starting your transfer.

Webull Financial does not offer tax advice. Any integration with third-party tax software is provided for informational purposes only. For any questions about taxes, including how to file, you should contact a tax professional.