Record rollovers to IRA's

[evilanne]

Q: What if you don't meet the holding period requirements?
Answer: If you fail to meet Webull's holding period requirements, the penalties come primarily from Webull's promotional terms and IRS distribution rules. [1, 2]
The fallout from breaking the rules depends heavily on how you move or access the funds:

1. You Transfer Out or Withdraw the Principal Early
The Installments Stop: Depending on your specific promotion year, Webull pays out major IRA transfer matches in equal annual installments over a 5-year timeline. If you transfer your assets out to another brokerage before that timeline finishes, any future unpaid bonus installments are instantly forfeited. [1]
Clawback of Paid Bonuses: Webull will automatically claw back and deduct any portion of the bonus that has already been credited to your account. [1]
Forced Liquidation: If you do not have enough raw cash sitting in the IRA to cover the clawback amount, Webull will force-sell your stocks or ETFs at current market prices to recover their funds.

2. You Manually Withdraw the Bonus Cash Out of the IRA
If you successfully receive an installment and choose to pull that cash entirely out of the retirement account before reaching age 59½: [1, 2]
IRS Penalties Apply: The IRS views this as an early retirement distribution.
The Cost: You will owe ordinary income taxes on the withdrawn amount plus a flat 10% early withdrawal penalty tax. [1, 2, 3, 4, 5]

3. You Cancel Your Webull Premium Subscription
For promotions tied directly to the Premium tier (like the 3% or 3.5% match rates), you must maintain an active Premium subscription for the designated minimum period (usually 1 full year). [1, 2]
If you cancel early or let the subscription lapse, Webull reserves the right to recalculate your match down to the lower "Standard" tier rate or completely rescind the promotional match. [1]

[jimcasada]

"Q: Within the IRA will the bonus eventually be taxed if you comply with the holding period requirements?
Answer: Within a Traditional IRA, the bonus will eventually be taxed as ordinary income when you withdraw the money in retirement. Within a Roth IRA, the bonus will never be taxed, allowing it to grow and be withdrawn."

Thanks for pointing this out. Sounds like the bonus would only tax free for rollovers directly from my TSP to their Roth. Still, $250k plus 3% bonus over 5 years compounded interest at 3.35% should equal about $303,619 according to this online calculator at dollartimes.com. That's not bad?

[evilanne]

Jim,
If you plan on going through with transfers, see https://www.youtube.com/watch?v=78X8X-FTFyk
Finder website has $160 cash back for Webull if you decide to try it, I think you have to link from the website first according to youtube video. The website is https://www.finder.com/finder-rewards?u ... escription Not sure it will work if you have already been talking to them directly

[evilanne]

"Q: Within the IRA will the bonus eventually be taxed if you comply with the holding period requirements?
Answer: Within a Traditional IRA, the bonus will eventually be taxed as ordinary income when you withdraw the money in retirement. Within a Roth IRA, the bonus will never be taxed, allowing it to grow and be withdrawn."

Thanks for pointing this out. Sounds like the bonus would only tax free for rollovers directly from my TSP to their Roth. Still, $250k plus 3% bonus over 5 years compounded interest at 3.35% should equal about $303,619 according to this online calculator at dollartimes.com. That's not bad?

3% is good. I wouldn't want to pay the taxes on a $250K conversion. They will also pay the fees charged by your current Schwab accounts if you submit timely documentation. The process for transferring via ACAT can be a little complicated with certain securities, some have to be sold (like partial shares of stock), any funds exclusive to brokerage do not transfer but they should verify all that before initiating the transfer.

Something to think about... offer is good though the end of year. I like Fidelity and not sure I would want to have another account to manage but partial transfer of $250K for additional $1300/per year tax free on Roth might be worth it. Not planning on withdrawing from Roth accounts but I have other accounts I can draw from if needed but dealing with company that has been in business for only 10 years vs 80 years (55 years for Schwab) is a factor to consider.

Let us know if you do it and how it goes.

[IRQVET]

Think I was pretty fortunate that the ROTH option has been there for every career position I've worked in. I've always done a 8% traditional 7% ROTH split.

[evilanne]

Is anyone familiar with Webull? The last few days, I have been shopping around for a possible better deal than what I have with my current Schwab traditional & Roth IRA's, and I have discovered that there are several investment organizations that offer matching funds for rollovers into their accounts. One that has really caught my attention is this Webull.com. I talked to one of their customer service representatives earlier today, and he tells me that I could roll over up to $250k and get a 3% match in return deposited in my new account within a few days. The catch is that I would also have to sign up for their "premium" service for at least 12 months at $40/year, and that I could not withdraw any more than my original deposit for 5 years (but I could withdraw any earnings over that amount at anytime). This 3% match applies to both traditional IRA or Roth IRA accounts. But he also said, that if I had both a traditional and a Roth IRA account, I could convert any amount from the traditional IRA over to the Roth IRA at any time, and that wouldn't count as a withdraw because they treat both IRA's as the same. Currently, they seem to have most all of the same investment options as Schwab, including a fixed rate 3.35% high yield Federally insured savings account option. Maybe this is something I have been looking for, but I'm not really familiar with Webull? They seem to have some good reviews, so what do you all think?

https://www.webull.com/ira-match

Jim,
Did you switch over the Webull?

[jimcasada]

Not yet, but still thinking about it. I did significantly raise my Fed & State withholdings from my retirement pay, in anticipation of doing another Roth conversion before the end of this quarter.