Contributions
When contributing to retirement or education accounts, proper check handling is
essential. Small mistakes, such as incorrect payee information or missing account details,
can delay processing and create unnecessary frustration. Understanding the correct
procedures can help ensure your funds are processed efficiently and securely.
Below is a straightforward guide to help navigate common check-processing situations.
529 Plan Contributions
529 plans are designed to help families save for education expenses, but contributions
must be handled carefully.
When preparing a check for a 529 contribution:
Verify the correct 529 plan company
Make the check payable directly to the financial institution managing the account
Avoid making checks payable to the beneficiary or account owner unless
specifically instructed
Include the beneficiary’s name and 529 account number in the memo line
Do not endorse the check
Send the check to your Financial Advisor for processing
Taking these steps helps avoid delays and ensures contributions are applied correctly.
IRA Contributions
Whether contributing to a Traditional or Roth IRA, accuracy matters.
Before sending an IRA contribution:
Confirm the contribution type (Traditional or Roth)
Verify the receiving custodian
Make the check payable to the financial institution or custodian
Include the IRA account number in the memo line
Note the tax year if applicable (for example, “2025 Roth IRA Contribution”)
Do not endorse the check
Mail the check promptly to your Financial Advisor
Clear instructions and accurate details help keep retirement contributions on track.
IRA Rollovers and Trustee-to-Trustee Transfers moving retirement assets requires additional care, especially when determining how the transfer is structured.
First, confirm whether the transaction is:
A direct rollover
A trustee-to-trustee transfer
An indirect rollover
From there:
Verify receiving custodian information and transfer instructions
Make checks payable to the institution, often using “FBO” (For Benefit Of) language
when required
Include the receiving account number when permitted
Complete all required paperwork before mailing
Avoid endorsing the check
Use certified or trackable mail for larger balances
Be mindful of the 60-day redeposit deadline for indirect rollovers
Proper documentation and timing are especially important when handling retirement
transfers.
Employer Retirement Accounts: 401(k)s and Beyond
Employer-sponsored retirement accounts such as 401(k)s and 403(b)s may have their own
requirements.
Before mailing a rollover check:
Confirm receiving plan details and instructions
Verify whether a rollover form or acceptance letter is required
Make the check payable to the receiving institution using FBO language when
necessary
Include the retirement account number if permitted
Confirm where the check should be sent; advisor oƯice, custodian, or directly to the
client
Avoid endorsing the check
Review potential withholding implications if not completing a direct rollover
Use a trackable delivery method whenever possible
Every retirement plan is different, so confirming requirements in advance can prevent
setbacks.
Best Practices for All Check Processing
No matter the account type, a few universal guidelines can help ensure smooth
processing:
1. Verify Instructions First
Always confirm payee and mailing instructions directly with the receiving institution before
sending funds.
2. Pay the Institution, Not the Individual
Checks are generally payable to the financial institution rather than the individual account
holder.
3. Avoid Endorsing Checks
Do not endorse checks unless specifically instructed by the receiving institution.
4. Double-Check Details
Review account numbers, names, and spelling carefully before mailing.
5. Include Required Paperwork
Missing forms are one of the most common causes of delays.
6. Use Secure Delivery
For larger balances or time-sensitive transactions, certified or trackable mailing methods
provide added security and peace of mind.
Final Thoughts
Check processing may seem straightforward, but attention to detail makes all the
difference. Verifying instructions, using the correct payee information, and including the
proper documentation can help avoid delays and ensure your contributions or transfers are
handled efficiently.
When in doubt, consult with your Financial Advisor before mailing funds to help ensure
everything is completed correctly the first time.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. Blakely Walters Wealth Management and LPL Financial are separate entities. The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.