How to Move My IRA From American Funds to a Traditional Bank
One of the wonderful things about a self-directed IRA is that you can control where the money is held and how it is invested. American Funds is a mutual fund company with a wide variety of funds in many different risk categories. If you have been invested with American Funds but are now looking to go into a much more conservative investment option such as a bank time certificate, you can transfer the money by completing a few simple forms.
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Instructions
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Go to your bank and ask to speak with an account representative. Be sure they don't refer you to the investment advisor that many banks now have on the platform. Explain that you are looking to open an IRA CD.
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Open an IRA and complete transfer paperwork. Have the representative process all paperwork as soon as possible and include a copy of your most recent statement, which will be required by American Funds upon receipt.
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Call American Funds and liquidate the mutual funds you have in the account. Ask about any fees associated with the liquidation. Depending on the share class you purchased and the length of time you held the fund, you may be assessed a fee. "A" Shares pay an upfront fee, "B" Shares need to be held for 5 years to avoid any fees and "C" Shares are considered a "no load" fund with no fee for purchase or liquidation.
You will not need to fill out any distribution paperwork with them. What you want is to have all funds held in the money market account pending a transfer.
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Await the transfer, which should take approximately 6 weeks. Once the transfer is done, contact American Funds approximately 4 weeks after the transaction is complete to make sure that any dividends that may have hit the account are also transferred.
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Tips & Warnings
American Funds charges a $10 annual maintenance fee in December each year. If you want to avoid this charge, be sure to get your transfer done prior to December.
