When it comes to IRAs, there are two different ways to rollover your assets between different IRA accounts. The first is what’s known as a transfer, or direct rollover. In this rollover process, one financial institution sends a request to the other for a transfer and the disbursing institution sends a check in return. Because the funds are never transferred to the IRA account holder, the process is not considered to be taxable by the IRS.
The second form of rollover is known as an indirect rollover, or a 60 day rollover. In this case, the original financial institution makes out a check directly to the IRA holder, who must then deposit this IRA rollover contribution into the receiving institution within 60 days. If this deadline of IRA rollover isn’t met, the funds will lose their status as IRA funds, meaning that they may be taxed as ordinary income and subject to additional penalties. Continue reading
When it comes to IRAs, the many names that exist for all of the different types of accounts can get confusing. If you’ve recently established a rollover IRA, you may be confused as to which types of accounts can be transferred into that rollover IRA. The following are some guidelines that will help you understand the process. Continue reading
If you’ve decided to perform an IRA rollover, you’ll obviously need to an IRA rollover account provider to receive the funds. But before you choose your provider, make sure you’ve considered all of the various types of accounts into which you can rollover your IRA, from a traditional IRA to a Roth IRA. Think about which rollover IRA account type makes the most sense for your short and long term financial goals. Made your decision? Great! Now it’s time to choose an account provider. Continue reading
The best, most desirable option for transferring funds to your rollover IRA account is to request a transaction called a direct rollover. In this type of transaction, you begin with your rollover IRA account managers or trustees. Tell them you want a direct rollover of your IRA funds, using the exact phrase “direct rollover”. Continue reading
A rollover IRA is a great tool that’s designed to maximize your retirement investing options while offering the same tax advantages you’ll find with traditional employer-operated retirement accounts, such as the 401k or 403b. However, before you can start contributing to an IRA rollover account, you’ll need to understand what they are and how to set one up.
Why Should I Establish a Rollover IRA?
If you’ve recently left a job or are considering a transition to a new employer, you may be wondering what to do with all of the funds you’ve invested in the company’s 401k or 403b retirement plan. Continue reading