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Rollover IRA Features

Features Description
Highlights A Rollover IRA allows individuals to move their assets from another IRS approved retirement plan, including 401(k), 403(b), and 457 and continue to accrue tax-deferred earnings. Assets must be reinvested in the Rollover IRA within 60 days.

Assets from various plans and IRAs may be commingled for easier management.

Eligibility Almost any distribution from a qualified plan can be rolled over to an IRA (exceptions include: mandatory distributions, distributions on amounts that exceeded limits, non-spousal death benefit distributions and hardship withdrawals)
Contribution Limits No limits on rollover amount
Tax Advantages Rollover contributions remain tax-deferred and additional earnings accumulate tax-deferred
Withdrawals
  • Taxation
Any withdrawals (except non-deductible contributions) are taxed as regular income
  • Timing

Withdrawals may be taken without penalty in certain situations, including:

  • attainment of age 59½
  • death or permanent disability
  • a first-time home purchase ($10,000 maximum)
  • qualified higher-education expenses
  • 72(t) periodic payments

Penalty: Other withdrawals may incur a 10% penalty tax
  • Required Distributions

Minimum distributions must be taken beginning at age 70½

Note: To calculate Required Minimum Distribution use our online RMD calculator
Deadline to Establish Within 60 days of distribution of assets
Deadline for Contributions Rollovers can be made at any time provided that the rollover is completed within 60 days of receipt of the last asset

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