Rollovers, transfers and conversions offer options in managing your retirement funds. In this volatile economic climate, you may find that an IRA is much easier to manage than a 401K or other investment vehicle that is invested in the stock market.
We would not presume to tell you what is best for your unique situation, but we are available to answer questions about our Traditional and Roth IRAs. You should speak to a financial advisor or tax specialist about your plans for the future and retirement in particular.
There are two major types of Rollovers:
Rollover is the word used when IRA funds are payable to you and you redeposit them to an IRA of the same type. A rollover is a tax-free movement of funds from one IRA to another IRA of the same type. The amount redeposited to the new IRA as a rollover continues to accumulate tax-deferred earnings in a Traditional IRA, or potentially tax-free earnings in a Roth IRA.
Rollovers are subject to certain restrictions. A distribution must be redeposited within 60 days of receipt to an IRA of the same type to be a valid rollover. You are permitted only ONE rollover from an IRA to an IRA of the same type in a twelve-month period. If you are age 70 ½ or older in the year you receive a distributions from your Traditional IRA, you are not permitted to roll over your required minimum distribution for the year.
Eligible rollover distributions may be rolled over to a Traditional IRA two ways:
A transfer is a tax-free way to move cash and other assets from one Traditional IRA to another, or one Roth IRA to another.
If you are age 70 ½ or older in the year you request a transfer from your Traditional IRA, you may transfer the entire balance, including your required minimum distribution. However, you must still withdraw your required minimum distribution by the appropriate deadline.
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