banking questions-- please help

[njcarita]

My father called me with a problem he's trying to find a solution too--

He went to the one of his banks a few weeks ago -- to tranfer 401k funds to another bank---

we'll the new bank never recieved the transfer and the original bank says it was sent--

My dad requested a stop payment placed on transfer because he's concerned its over 100,000. the bank states that they need to wait 90 days before a stop payment can be even placed on funds?????

they bank says they are following FDIC rules????

my dad just wants to know where his funds are???

 

[brandydandy]

See if he can verify the routing number that the bank sent it too against the number that is should be.... Possibley someone mistyped the number, and it is out there in limbo.

 

[omghidanielle]

double check where it was sent, if it was sent to the wrong place, the receiving end should return it because it doesn't belong to them.

I know with bank checks, you have to wait 14 business days before being able to put a stop payment on them because they need to be 100% sure it hasn't cleared, but I don't understand how/why an electronic transfer would require 90 days? That's a little absurd.

 

[minnie1928]

My father called me with a problem he's trying to find a solution too--

He went to the one of his banks a few weeks ago -- to tranfer 401k funds to another bank---

we'll the new bank never recieved the transfer and the original bank says it was sent--

My dad requested a stop payment placed on transfer because he's concerned its over 100,000. the bank states that they need to wait 90 days before a stop payment can be even placed on funds?????

they bank says they are following FDIC rules????

my dad just wants to know where his funds are???

Ok, I have 10 years bank experience in wiring funds. Did your dad wire the funds or have some form of check issued? You can't place a stop payment on a wire, the money is already sent. If a wire was sent, you need to have the sending bank investigate the wire. They should be able to call the receiving bank (the bank it was actually sent to, in case it went to a bank other than the one your dad intended). Again, if it was a wire, was it sent from one US bank to another US bank? If so, that transfer should be virtually instantaneous. If it were sent internationally, that can take longer depending on the banks involved.

It's entirely possible that the bank sent the wire to the right bank, but keyed in the wrong account number and it's sitting in someone else's account. I'd call your dad's bank back, speak to a supervisor in the wire room (again, assuming it was wired) and explain the situation.

 

[rhpools]

This would have applied to a bank issued check. You must wait 90 days and then sign a hold harmless agreement when placing the stop pay. If anyone negotiates the check between this time it would be fraud and legal action would be required.

14 years bank operations experience

 

[SuzanneSLO]

I am not sure how the OPs Dad is personally transferring 401K funds from one bank to another. I thought these were part of a company retirement porgram. But if the funds are actually now in Dad's IRA, he may have another potential timing issue.

If the transfer was not a direct rollover and the the funds are not back in an IRA account within 60 days, then they may need to be included in the OP's Dad's taxable income for 2009. I understand that this rule is hard and fast; no waivers, no favors. So Dad really should not wait 90 days to get this sorted out.

Best of luck -- Suzanne