You are here: Home Finances IRAs IRAs: Rollovers
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

IRAs: Rollovers

1/1

When you transfer funds from a tax advantaged retirement plan to another, it is known as a “Rollover.” This applies whether it is from an employer sponsored plan to an IRA or from a traditional IRA to a Roth IRA. A rollover is a transfer from one retirement plan to another in a manner that the funds are not subject to income tax.  Rollover rules must be followed strictly in order to avoid taxation.

You can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own.

The rules about roll overs are complex and can change from year to year. For information, speak with your tax advisor or see IRS Publication 590. Click on IRA Rollovers. www.irs.gov/publications/p590a/  offsite link

How Do I Do A Rollover?

The easiest way is to contact the broker, fund company or administrator you want to invest with. Most companies will provide the forms you need and even call your former employer or financial institution to get your money moved.

If your new company won't make the move for you, contact the current holder of the funds and ask for a check to be made out to your IRA trustee or your administrator. You do not want the check payable to you.

If the check is payable to you, invest it into an IRA or a new company's plan within 60 days. If money was automatically withheld from the check, invest that amount as well.

                                                                                                 Edited by: Peg Downey, CFP, NAPFA
                                                                                                                    Money Plans
                                                                                                                    Silver Spring, MD
                                                                                                                    January 2008


Please share how this information is useful to you. 0 Comments

 

Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.