How to Transfer a Traditional IRA from Charles Schwab to Bank of America

Retirement account transfers can feel like navigating a financial maze, especially when you’re looking to optimize your investment strategy. You may have opened your Traditional IRA with Charles Schwab years ago, but now Bank of America’s investment offerings and retirement planning tools might better align with your current goals. A well-executed transfer could lead to improved investment choices, potential cost savings, and a more personalized approach to retirement planning.

At Carry, we want to make financial decisions feel more manageable, even if you’re handling them outside our platform. This guide breaks down the steps to transfer your Traditional IRA from Charles Schwab to Bank of America smoothly and penalty-free. Please note that while we try to provide the most up-to-date information, these processes are subject to change without notice, so be sure to check with your provider before moving forward.

Step 1: Understand Your Traditional IRA Transfer Requirements

Transferring a Traditional IRA from Charles Schwab to Bank of America requires careful planning and attention to detail. The goal is to move your retirement funds between institutions while preserving the tax-advantaged status of your account.

What You’ll Need:

✅ A valid Traditional IRA at Charles Schwab

✅ An open Traditional IRA at Bank of America

✅ Personal identification documents

✅ Most recent IRA statement

✅ Social Security number

✅ Contact details for both financial institutions

📝 Pro Tip: Always confirm your exact account details before initiating a transfer to avoid potential delays or errors.

Step 2: Select Your Transfer Method

There are two main ways to transfer your Traditional IRA: direct transfer or indirect rollover. A direct transfer is typically the most efficient and recommended option.

✅ Direct Transfer (Trustee-to-Trustee)

✅ Indirect Rollover:

✏️ Hypothetical Example: If you have $50,000 in your Charles Schwab Traditional IRA, a direct transfer would move the entire balance directly into your new Bank of America IRA without you handling the funds.

Step 3: Gather Necessary Documentation

Having your paperwork ready can streamline the process. Bank of America will require specific documents to initiate and complete the transfer.

Required Documents:

✅ Government-issued photo ID

✅ Social Security card 

✅ Most recent Charles Schwab IRA statement

✅ Completed IRA transfer request form

✅ Precise transfer amount

📝 Important Note: Ensure that all documents exactly match your legal name and account records to prevent processing delays.

Step 4: Initiate the Transfer Request

Contact Bank of America to start your Traditional IRA transfer. Most financial institutions have dedicated rollover specialists who can guide you through the process.

Transfer Request Steps:

Most transfers are completed from submission to completion within 5–10 business days.

Step 5: Understand Potential Transfer Fees

It’s always advisable to consult with both institutions and confirm potential costs.

Bank of America typically does not charge a fee to receive incoming IRA transfers. Charles Schwab may charge a $50 full account transfer fee.

Step 6: Tax Considerations and Compliance

Preserving your account’s tax-deferred status is key during the transfer.

Key Tax Guidelines:

✅ Direct transfers are not taxable events

✅ Indirect rollovers must be completed within 60 days to avoid taxes and penalties

✅ Ensure you’re transferring between the same account types (Traditional to Traditional IRA)

✅ Keep records of the transfer

📝 Pro Tip: Consult a tax professional if you have unique circumstances or complex transfer requirements.

Step 7: Verify Transfer Completion

After initiating the transfer, monitor both your Charles Schwab and Bank of America accounts to confirm everything has been processed correctly.

Verification Checklist:

✅ Ensure the transferred amount matches your original balance

✅ Check for any residual or untransferred funds

✅ Confirm that assets or cash arrived as expected

✅ Review your new Bank of America IRA statements for accuracy

Step 8: Final Account Setup and Investment Selection

Once the funds have arrived at Bank of America, review your investment options and align your portfolio with your retirement goals.

Investment Considerations:

📌 If you’re looking for more guidance, these resources may help:

Final Thoughts on Your Traditional IRA Transfer

Transferring a Traditional IRA from Charles Schwab to Bank of America requires careful attention to detail and a clear understanding of each step in the process. The key takeaways include opting for a direct transfer to help avoid taxes and penalties, confirming that all account information is accurate, and submitting all documentation within the necessary timeframe.

While the process may initially seem complex, both Charles Schwab and Bank of America provide support to help you complete the transfer efficiently and maintain the tax-advantaged status of your retirement savings.

📌 Want to dive deeper? Here are some other helpful (and free) resources:

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Disclaimer:

The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.

The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.

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