Initiating an ACH Transfer: 

1. On the Transfer & Pay > Transfer Funds menu, after you select the transaction type, currency and the transaction method, you enter and save your bank information just as you would for any other deposit or withdrawal method.

Note: You do not enter an amount.

2. For ACH withdrawals, as part of the bank information you enter, you are asked to enter a bank information name and select the Bank Information Usage. This selection tells us if you would like the ability to reuse this bank information for both withdrawals and deposits (Debit & Credit), or only withdrawals (Credit).
3. You will be asked to verify your bank in one of two ways:

Enter your banking information

1. Select: Enter your banking information 

2. Select the Bank Account Type
3. Enter the Routing Number, Bank Account Number and Confirm the Bank Account Number below 
4. Or use the Bank Search to find the Receiving Bank                                                                                                                   
5. You will be asked to confirm your request via electronic signature and security token authentication which authorizes both IBKR and your bank to act upon any transfer requests you provide through IBKR;
6. If your bank account is in your name then your account will instantly link to your bank account. Then you can set up your deposit or withdrawal transfers. 
7. If we cannot verify the bank account is in your name, we will use the traditional verification method of sending two micro-deposits to your bank account.
8. Within 1-3 business days, two random credits (micro-deposits) each less than one dollar and a corresponding debit (withdrawal) will be issued to your bank account.
9. You will need to monitor your bank account for these transactions as they will be needed to confirm this funding instruction.
   • Note: These transactions may take place on different days.
10. Once you have these amounts, log back in to Client Portal and from the Pending Items menu option select the Confirm Amount link adjacent to your instruction enter the credit amounts.
11. After you have entered the correct amounts, you may use the ACH instruction for deposit and withdrawal transfers.

Log in at your bank

1. Select: Log in at your bank                                                                                
2. Enter a Nickname                                                                                                                                                                                                     
3. Click the Verify Bank Account button 
4. Select your bank from the pop-up window
   • 
5. Enter the login credentials for your online banking account, and click Next
   • 
6. On the next screen, select the account you wish to use.
7. The Verify Account screen will present the details of the account you selected. Click Confirm.
   • 
8. Verify banking information and click Continue.
   • 
9. Confirm and Sign on the next screen. Scroll down to enter your:

• Electronic Signature
• IBKR Username
• IBKR Password

     Click Continue when complete. (OR, click Cancel Request if you do not wish to proceed.)

 9. What appears next will be based on your Security Device:

If using Security Code Card:
a) The Card Values field will appear.
b) Follow the onscreen instructions and use your card to obtain values.
c) Enter values into Card Values.

If using either the Digital Security Card or IB Key App:
a) The Challenge Code and Passcode fields will appear.
b) Enter the Challenge Code into the Digital Security Card and press OK, OR on your smartphone, launch the IB Key App, enter the Challenge Code, and click Generate.
c) Enter the Response String returned into the Passcode field.

 10. Click Continue.

Success! You may use this transfer method for future deposit and withdrawal transfers.

Be Careful…
For steps 4 and 6 above, the following points are important to keep in mind:

Step 4- When logging into your online banking site, be sure the username and password is entered properly. For example, case sensitivity, middle initials, etc. may be a part of your username and password. An error message will appear if there is an issue.

Step 6- For security reasons, the name of the bank Account Holder must match the name on the IBKR account. If the names do not match, the following message will appear.

Note:

• IBKR does not charge any fee for ACH deposits and accounts are afforded one free withdrawal request per month. 
• ACH deposits are subject to a possible 4 business day credit hold after arrival prior to being credited to your account. 
• If funds are withdrawn to a bank other than the originating bank, a 44-business-day withdrawal hold period will be applied.

Interactive Brokers offers three IRA account types for US persons:  Traditional IRA, Roth IRA, and Simplified Employee Pension plan IRA (a.k.a. SEP-IRA). Rollover transaction options may be available into or out of each account type.

The term IRA Rollover refers to several different movements of funds between US retirement accounts. Select from the list below for a brief description of each rollover type available, as well as the their guidelines.

IRA to IRA Rollover

Direct Rollover

IRA to Employer Sponsored Retirement Plan Rollover

12-Month Rule

60-Day Period

Rollover Types

1. IRA to IRA Rollover

Funds withdrawn from an IRA and re-deposited into an IRA within 60 days may be eligible for treatment as a 60-day rollover contribution. If eligible, this movement of funds may qualify as an IRA withdrawal of funds without any penalty or taxes.   

Tax Reporting - IBKR will report the withdrawal of funds as an IRA distribution and the re-deposit of funds as an IRA rollover contribution to the IRS. The IRS receives Form 5498 (IRA Contributions) and Form 1099-R (IRA Distributions). US investors do not include the Form 5498 with their tax filing, but do include the 1099-R. Click IRA Tax Reporting for details.

2. Direct Rollover

Funds received or withdrawn from an employer-sponsored retirement plan and deposited directly into an IRA. The 20% tax withholding of funds by the plan sponsor is waived when funds are rolled directly into an IRA.

Tax Reporting - IBKR will report the deposit of funds from an employer-sponsored retirement plan as an IRA rollover contribution to the IRS. The IRS receives Form 5498 (IRA Contributions). US investors do not include the Form 5498 with their tax filing. Click IRA Tax Reporting for details.

3. IRA to Employer Sponsored Retirement Plan Rollover

Funds moved directly from an IRA into an employer's retirement plan are deemed rollover contributions. Not all retirement plans accept rollovers from IRAs. Investors should consult the plan sponsor to determine eligibility.

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Limitations & Guidelines 

12-Month Rule

Distributed funds from an IRA may be rolled into another IRA only once every 12-month period. The rule applies to funds withdrawn from each separate IRA. The 12-month period begins the date funds are received, not on the date funds are deposited into another IRA. (See IRS Publication 590 for limited exceptions to the rule.)

60-Day Period

Distributions from an IRA or Employer Sponsored Retirement plan may remain eligible for the tax-free rollover treatment only when contributed to another qualified plan within 60 days of receipt. Generally, funds re-deposited outside of 60 days are not tax-free.  The withdrawal of funds is taxable. The deposit into another IRA is treated as a regular contribution.  (See IRS Publication 590 for limited exceptions to the rule.)

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Click here to return to the Retirement Account Resource page.

Disclaimer: IBKR does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax advisor or refer to the US Internal Revenue Service.