Rollover Resources
Frequently Asked Questions
When you leave a company, you have a unique opportunity to take control of your retirement investments. 67% of Americans are choosing to take more control of their investments when they leave their employer by "rolling over" the proceeds from their former company's retirement plan into an Individual Retirement Account or IRA.
Consolidating your retirement accounts into a self-directed Rollover IRA offers several benefits:
- Maintaining tax-deferred status on assets
- Gaining access to a variety of investment options
- Easier management and tracking of funds
- Potentially fewer fees
- What do we do for your IRA?
- IRA to IRA rollover
- IRA to Employer Plan Rollover
- What are Inherited IRAs?
- What is the 60-day Period?
- How many Rollovers can be done?
- Is a Rollover deductible?
- When must I take a distribution?
- What do I roll over?
- Employer sponsored plan to an IRA Rollover
- Direct Rollover
What do we do for your IRA?
Our services include:
- Trustee services
- IRS approved prototype documents
- IRS Forms 5498 and 1099-R
- Notice of required minimum distributions and free calculation on request
- Toll-free number for customer service
IRA to IRA Rollover
If you need money for a short term, you may withdraw it from your IRA and redeposit it within 60 days without taxes or penalty. For example: Mary, who has an IRA, needs to buy a car in November and cannot wait to receive her bonus check in December. Mary can take money from her IRA to buy the car and then deposit the money back into her IRA when she receives her bonus, as long as it is within 60 days of receipt of her IRA assets.
IRA to Employer Plan Rollover
If you have an IRA and then go to work for a company who has an employer sponsored plan that accepts rollovers, you can roll over your IRA to the company's retirement plan.
What are Inherited IRAs?
Spouses who inherit an IRA can roll it into their IRA or treat it as their own. However, if non-spouse beneficiaries inherit an IRA, they cannot roll it over into their IRA, and they must withdraw the assets within a certain period of time. Rules on distributions can be complicated and individuals should consult with their tax advisors before making any decisions.
What is the 60-day Period?
Assets must be rolled over into an IRA within sixty (60) days of receipt to maintain the tax-deferred status and avoid taxes and penalties.
How many rollovers can be done?
You can receive a distribution from an IRA and roll it into another IRA only once during any twelve-month period. The twelve months begin on the date you receive the last asset of the IRA distribution, not on the date you roll it over. This applies separately to each IRA you have. There is no limit to the number of transfers directly between IRAs.
Is a rollover deductible?
No. An individual cannot deduct the amount that is reinvested in the new IRA.
When must I take distributions?
Required minimum distributions must begin by April 1 of the year following the year in which you attain age 70½. You may start taking distributions from your account without penalty any time after you reach age 59½. Ordinary income taxes are due on these distributions.
Required minimum distributions after age 70½ are not eligible for rollover.
What do I roll over?
If you receive non-cash assets from a qualified plan, the assets can be sold and the proceeds rolled over into the IRA. You cannot substitute your own funds for property you receive from your employer sponsored plan. Assets purchased with proceeds cannot be rolled over. The rule is: roll over what is received or the proceeds from the sale.
Employer sponsored plan to an IRA Rollover
As the job market changes, Americans are finding it increasingly rare to be employed at the same company for their entire career. As they move between employers, people can no longer count on one pension plan to provide for their retirement. They need a way to put assets distributed from their employer-sponsored plan, such as a 401(k), into a program that will allow the assets to continue to grow tax deferred until retirement. So when a job change occurs, individuals need to carefully consider their options.
Direct Rollover
When you receive a distribution from an employer-sponsored plan and your new employer does not offer a qualified plan or does not accept rollovers into its plan, you have two options:
- Receive the assets. You will owe taxes and possibly penalties on the withdrawn amount. Also, the plan sponsor is required to withhold 20% upfront as prepayment of taxes.
- Instruct the plan sponsor to roll the assets directly to an IRA. This direct rollover will enable you to avoid the 20% tax withholding.
Note: If you choose to receive a distribution, but decide to roll it to an IRA within 60 days, you may also deposit the amount of the 20% tax withholding, avoiding the need to pay taxes on that portion of the distribution.
