I like how you took me saying not to borrow money from your 401k as it’s bad to spend money.
Bank deposit on hold
- Thread starter 1100011CS
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I like how you took me saying not to borrow money from your 401k as it’s bad to spend money.
We flipped a house, and when we tried to deposit the proceeds from the closing which was written on a law firm's escrow account the teller yelled..."where did you get this kind of money"! Needless to say we left that credit union the next day.
I would hope you took the issue up with credit union management so they aren't losing other business because of a teller's unprofessionalism.
Lots of folks moving to cash for big transactions...things you might not expect. And that is only going to increase if the IRS gets its way and the reporting limit drops to $600...
Ye ole 100 dolla' bill...
I work in a CU. The amount of fraud happening is ridiculous. Sometimes members are in on it, sometimes they're innocent victims. We see counterfeit cashiers checks and money orders on a regular basis. People get pissed that we ask questions, but those questions may reveal that they are receiving or sending "money" for internet relationships. ("Have you met this person?" "Yes" "Face to face?" "Yes" "Did you visit them/they visit you?" "No, but we Facetime every day...") Or "Secret Shopper", or advertising on their car, purchasing scams, etc... If a transaction is unusual, we're going to question it. And it still may get a hold or extended hold. Just this week we had a check returned that was deposited 3 weeks ago. The check was fraudulently written. When the owner of the account received their monthly statement, they noticed the discrepancy, and the bank returned it. Now we have to try to collect. THAT is why there are holds.
The $10,000 threshold is for cash and near cash transactions (cashiers checks, wires, cash) in or out of an account. If we know someone is trying to get around it we report that as well (it's called structing). There are substantial fines and penalties if we don't-even potential criminal liability.
As for the $600 reporting, yes it is proposed and is getting some traction (as well as some pushback) in Congress. As it stands now financial institutions would report an aggregate of transactions exceeding $600 for the year, not individual transactions. For now... There's also talk of raising the $600 to a higher level for reporting. I actually had a guy call yesterday and ask if we were going to comply if it passes. If only I could pick and choose which laws/regs I wanted to comply with! This $600 (or whatever level) reporting is going to suck-dp systems aren't set up to do this so we're looking at significant costs.**UPDATE** I literally just got an update on this from someone connected in the industry-it's starting to look like this may not happen, though the situation is very fluid. If you are concerned, I would suggest contacting your representative. Especially Congresswoman Axne since she is a member of the majority party.
The $10,000 threshold is for cash and near cash transactions (cashiers checks, wires, cash) in or out of an account. If we know someone is trying to get around it we report that as well (it's called structing). There are substantial fines and penalties if we don't-even potential criminal liability.
As for the $600 reporting, yes it is proposed and is getting some traction (as well as some pushback) in Congress. As it stands now financial institutions would report an aggregate of transactions exceeding $600 for the year, not individual transactions. For now... There's also talk of raising the $600 to a higher level for reporting. I actually had a guy call yesterday and ask if we were going to comply if it passes. If only I could pick and choose which laws/regs I wanted to comply with! This $600 (or whatever level) reporting is going to suck-dp systems aren't set up to do this so we're looking at significant costs.**UPDATE** I literally just got an update on this from someone connected in the industry-it's starting to look like this may not happen, though the situation is very fluid. If you are concerned, I would suggest contacting your representative. Especially Congresswoman Axne since she is a member of the majority party.
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Thank you for this thread, we are doing the same thing next week. Our old house closes and I need to move those funds into an investment account as soon as I can.
I couldn't disagree more. You go ahead and owe lending institutions money for most of your life. For me, I entered retirement owing no one a cent and living a very comfortable lifestyle having paid back everything I borrowed ... from me ... plus interest ... to me. Just think what you could do with all that money you wasted giving it to banks your whole life.
But when you take a loan out on your 401k, aren't you withdrawing the amount of the loan? Thus, losing capital gains and dividends on your investment options in place of interest? This depends on what the interest rate is, but I would expect it would be less than the historical gain on the S&P500.
It can be smart but there a risks involved. Early in my working career I had a 401K that had accumulated some value. I took out a loan against it and within the year a job opportunity came up that had me switching jobs. I had to pay back the loan much earlier than I had planned and on my meager salary I couldn't do it so I ended up paying a costly penalty on the loan which was then considered an early disbursement.
That proved to be a very costly loan.
Lol what? How on earth did we jump from its bad to borrow from your 401k to I encourage borrowing from banks? I pay cash for everything. I don’t know how you made that jump to I’m a debt lover. Maybe if you actually had a personal finance plan you would be able to pay for things without borrowing from your 401k.
Jesus H Christ. There are a lot of unforeseen reasons why someone might need some cash beyond what they have immediately available to them. I’m glad you didn’t get hit with big medical bills or have an employment issue or deal with a divorce/custody situation, etc. You can drop 20k easy on a custody hearing if it’s not amicable.
You do you man. Keep acting like **** doesn’t happen.
Interest was always 6 percent, which was sometimes more than I was earning in investments, especially during the early 2000s, during the downturn and later when we had another downturn (2008?). The way I looked at it, not only was I making 6 percent interest, but I wasn't paying 8 or 9 percent or however much banks charge on a loan nowadays. So If you figure the average S&P 500 annual return is 10-11 percent, I was actually doing better than that. Now, I wouldn't recommend borrowing your way to wealth, but I suppose Dave Ramsey and Donald Trump would disagree with that as well.
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I used a collective "you." It wasn't aimed at "you" specifically. And I have a personal finance plan, thank you. It's working quite nicely. Why are "you" so interested in my personal finances anyway?
Because there are people who don’t understand finances. When a dumb idea like that is presented it needs to be called out. I kind of find it funny that someone who handles there money so well has no capital available outside of retirement to buy something simple like a car
We get a large check every year from my wife's parents and when we deposit it the bank usually places a hold on it until it clears my wife's parent's bank.
I understand and agree with these statements.A bank in Togo, actually.
It was a conservative estimate.
I worked briefly at a bank 15+ years ago and there was a guy who brought in a hand-written, large, out of state check who had a minimal relationship with the bank, and was mad when the issuing back would not verify funds and we placed a long hold on it (can't recall if it was 10 days, but it was close ... at least 5-7).
It really is an issue. I have seen checks bounce or be shown to be fraudulent more than 2 weeks after deposit. Lots of scams out there.
And lots of issuing banks don't want to verify funds because there are things out of their control. Say I'm with the issuing bank, and the customer writes a check for $5,000. Then the customers pays his buddy, and the buddy's bank calls to verify. Sure, at the exact moment of the call, there might be $5,001 in his account, but how do we know he didn't write a second check for another $5,000 that is floating out there somewhere? So lots of banks just refuse to verify.
I have no dog in this fight, but if he is doing okay........how was it a "dumb" idea? I'm sure someone on this site who knows finances could probably rifle through your records and in their opinion find some "dumb" idea's. But they worked for you, right? To each their own.
Imagine getting uppity about someone else's money lol
