Hey everybody,

I'm having a hard time finding information on how to convert a Roth IRA from one firm (Morgan Stanley) to another (E*Trade).

How do I do this? Is there some IRS form that allows me to name a new trustee? If so, where do I get the form? Or can I simply withdraw the money from Roth #1 and dump it into a conversion Roth #2?

Totally lost and looking for some guidance. Thanks in advance.

Brian

You are mixing up some terminology here. If your IRA is currently a Roth, you are not going to convert it but rather transfer the existing account. Switching the "home" of your IRA does not require any forms from the IRS.

The single best way to transfer a Roth is to contact the new custodian and ask them for the paperwork for a direct transfer of an existing account. Then you fill out the forms and return them to the new custodian who then contacts the existing account custodian. A direct transfer is desireable since you do not have taxes taken out and you do not need to worry about the number of days before the funds are redeposited. All custodians know of this process. Use the correct terminology: transfering account. If the account rep does not understand this transaction, you are talking to the wrong person.

One word of warning. Do not assume that all this happens on auto pilot. The process takes a few weeks, and you must follow-up to make sure the paperwork is completed.