“Not in good order,” or NIGO, is the custodian's way of saying a form can't be processed as submitted. In a transition, every NIGO costs you twice: the time to find and fix the problem, and the days a client's account sits in limbo while the corrected form is signed and resubmitted. This module covers the most common reasons paperwork gets rejected, and a simple pre-check that catches them before you hit submit.
Why paperwork comes back
Most rejections aren't complicated. They're small details that are easy to miss when you're processing dozens of forms a day. The usual suspects:
- Names that don't match the delivering firm. The account title on the transfer form has to match the account at the firm sending the assets. A missing middle initial, a maiden name, “Jr.” left off, or a trust name written slightly differently can be enough for a rejection.
- Missing signatures or dates. Every required signer has to sign, including both owners on a joint account and every trustee the trust document requires. Undated or incorrectly dated signatures are a common catch.
- Wrong account type or registration. The receiving account has to be the same type as the delivering account: individual to individual, joint to joint with the same ownership type, traditional IRA to traditional IRA. A joint account opened as individual, or a Roth sent to a traditional IRA, won't go through as submitted.
- Missing pages. Multi-page forms with one page left out of the packet, or an e-signature envelope sent without every required page.
- Stale or missing statements. Many transfers need a recent statement from the delivering firm to confirm the account number and title. An old statement can mean the details on the form are out of date.
- Missing trust or estate documents. Trust accounts usually need a certification of trust or the relevant pages of the trust agreement. Estate and inherited accounts often need further documents, such as a death certificate or letters testamentary.
- Assets that can't move as-is. Proprietary mutual funds or products the new custodian can't hold may need to be sold or handled separately, which is a decision for you and the client, not a default. Annuities and other insurance products usually need separate handling with the carrier.
Requirements vary by custodian, delivering firm and account type. Your custodian's transition or service team is the authority on what a specific form needs, so keep their checklists close.
Check before you submit
The cheapest NIGO is the one that never happens. A short, consistent check of every form before it goes out catches most of the issues above. The tool below walks through a pre-check for four common form types. Pick one, tick off each check as you confirm it, and see what's still outstanding.
Tool: Paperwork Pre-Check
What are you submitting?
Tick each check once you've confirmed it
ACAT transfer · 0/8 checks done
Not ready8 outstanding issues
- Every name matches the client's ID and existing records exactly. Confirm each owner's full legal name, including middle initial and suffix.
- Every required signer has signed, and every signature is dated. A missing signer or undated signature is one of the most common rejections.
- All pages of the form are included. Check the page count against the form's footer before sending.
- Account title matches the delivering firm's statement exactly. A name or title mismatch with the delivering firm is a frequent cause of rejection.
- Delivering account number checked against a recent statement. Copy the account number from a current statement, not from memory or an old file.
- Receiving account type matches the delivering account (e.g. joint to joint, IRA to IRA). Mismatched registrations won't go through as submitted.
- Receiving account is open at the new custodian. Open the new account first, or submit the application alongside the transfer as your custodian requires.
- Positions the new custodian can't hold have been identified and discussed with the client. Proprietary funds or products may need a separate decision before the transfer.
This is a general pre-check covering common causes of NIGO paperwork, not a complete list. Requirements vary by custodian, delivering firm, plan and account type. Your custodian's transition or service team has the final word on what a specific form needs.
Make the check routine
A checklist only helps if it runs on every form, including the ones that go out at 6pm on a busy Friday. That's the job the Paperwork Check Agent takes on. It reviews each form before submission against the client's records and the delivering firm's statement, flags anything that doesn't match, and holds it back for your team to fix. When something does get rejected, the Account Transfer Agent flags it the day it happens, with the reason, so the fix starts right away instead of a week later.