How Do I Send a Check to Someone Online Using Vanguard?
Vanguard members with eligible accounts can use Vanguard's check writing service to send checks online. Members with eligible accounts will need to set up check writing services to start this process. Members who write checks using their Vanguard accounts continue to make money off of the funds in their account until the checks have cleared. You should note that checks are considered redemptions and may be required when filing income taxes. However, a percentage of a member's redemptions or the entire portion may be required to file income taxes. You should also note that Vanguard will not withhold taxes of any kind on the checks that are written. As a result, you may need to account for state, local, and federal taxes for the Vanguard checks you write. Also, inherited IRAs aren't eligible for check writing services. . Members should also note that checks arent mailed to members unless they have a Vanguard balance. If your balance is zero, checks will be mailed once you have funds available in your Vanguard account.
Vanguard or VMI offers check writing services to its members. However, there are specific requirements that must be met to use this service. If members are eligible based on these requirements, they are free to write checks to anyone online.
Set Up Check Writing
Vanguard members who want to set up check writing services will need to complete an application and mail it to Vanguard. You will receive a checkbook in the mail within a few weeks after the application has been processed. However, Vanguard users should note that checkbooks won't be mailed until they have a balance in their Vanguard account. However, those with a balance will receive checks after their application has been processed. Members also have the option of linking their check account to their Vanguard account.
Check Writing Requirements
Check writing privileges are available to Vanguard members with select mutual fund and brokerage accounts. The minimum amount per check is $250. You can send checks to anyone online using the Vanguard check writing service. As checks clear, you have access to images of your processed checks in your transaction history on vangurad.com. Checks are considered drafts.
Vanguard Checks and Taxes
Members should note that their investments will continue to earn money until the checks you wrote clear. For tax purposes, checks are considered redemptions. You may need to report a percentage or all of your redemptions when you file your income taxes.
Which Vanguard Accounts are eligible for Check Writing?
Vanguard doesn't withhold federal, state, or local income taxes on the amount of the check. Also, check writing services aren't available for inherited IRAs. Check writing privileges are available to Vanguard members with IRA's that are:
- Traditional
- Rollover
- Roth
- SEP
- SIMPLE
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