Bank to Trading Acct Transfer Reporting

Yes. Standard procedure for anything over $9999.99. Wife was a customer service manager. Fidelity will also report everything themselves.

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Yes. Standard procedure for anything over $9999.99. Wife was a customer service manager. Fidelity will also report everything themselves.

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Thanks. I was thinking about transferring higher than I normally do over, so wasn't sure if that was the same like straight deposit/withdrawal cash at an actual bank.

Obviously not going to be my case, but left wondering...so someone could transfer in/out 5-9k every day/weekly/bi-weekly/monthly and that's not reported or does that cause red flags?

Also, do you know if they ask you to fill anything out if you did do anything over 10k or do they just take info from acct to report?

Someone with more personal experience may offer clarification, but it looks like the report is required only for CASH transactions of more than $10,000. Not electronic exchanges among accounts.

IRS says: "Cash includes coins and currency of the United States or any foreign country. For some transactions, it’s also a cashier’s check, bank draft, traveler’s check or money order with a face amount of $10,000 or less." (The report form has spaces to report the amount of currency, cashier's checks, etc. that add up to $10,000 or more.)

Here’s what people should know about reporting cash payments

Now, if you are depositing cash, and you try to avoid the $10,000 by making smaller deposits, that is a federal crime called structuring.

People go to prison for this. Here is an example.

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The United States Attorney’s Office for the Northern District of California announced that Yogesh K. Gandhi was sentenced late last Friday afternoon to 2 years in prison, and ordered to pay a $4,000 fine for unlawfully structuring currency transactions.

According to the plea agreement, Mr. Gandhi admitted that on October 25, 2001, and October 26, 2001, he structured five cash deposits of $9,000 each at Citibank Federal Savings Bank in Contra Costa County to avoid the Currency Transaction Reports (“CTR”) which the bank was required to prepare and submit to the Internal Revenue Service if he had made one cash deposit of $45,000.

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