|
|
What is
an IRA Rollover?
If you leave a job or retire, you might want to
transfer the money you’ve invested in one or more
employer-sponsored retirement plans to an individual
retirement account (IRA). An IRA rollover is an
effective way to keep your money accumulating tax
deferred.
Using an IRA rollover, you transfer your retirement
savings to an account at a private institution of your
choice, and you choose how you will invest the funds. To
preserve the tax-deferred status of retirement savings,
the funds must be deposited in the IRA within 60 days of
withdrawal from an employer’s plan. To avoid potential
penalties and a 20% federal income tax withholding from
your former employer, you should arrange for a direct,
institution-to-institution transfer.
Previously, you were only able to roll over funds from
an employer-sponsored plan to a traditional IRA.
However, starting in 2008, direct rollovers to a Roth
IRA will be allowed (of course, income limits apply to
Roth IRA rollovers until 2010, when they are repealed,
and ordinary income taxes are owed on all amounts rolled
over to a Roth IRA).
An IRA can be tailored to your particular needs and
goals and can incorporate a variety of investment
vehicles, as opposed to the limited number of options
available in many employer-sponsored retirement plans.
In addition, tax-deferred retirement savings from
multiple employers can later be consolidated.
|
|
|
Over time, IRA rollovers may make it easier to manage
your retirement savings by consolidating your holdings
in one place. This can help cut down on paperwork and
give you greater control over the management of your
retirement assets.
Distributions from traditional IRAs are taxed as
ordinary income and may be subject to an additional 10%
federal income tax penalty if taken prior to reaching
age 59½. Just as with employer-sponsored retirement
plans, you must begin taking required minimum
distributions from a traditional IRA each year after you
turn age 70½.
For more information on how we can best assist your
401k rollover and IRA rollover needs, please fill out
the short contact form above or call us at
1-888-333-4641.
Cross Financial Management is a full-service
financial planning and consulting firm dedicated to
helping our clients build wealth and protect their
hard-earned assets. We specialize in 401k plans, though
provide an array of solid services. Our firm is
completely independent, so our loyalty belongs
exclusively to our clients -- not to a parent company.
Our independence enables us to establish working
relationships with a number of industry-leading
brokerage firms and insurance providers whose products
we leverage to create customized client portfolios. We
recommend only those products and services that can be
tailored to suit our clients' unique needs
* The information on this
page is for informational purposes only and does not
constitute, and should not be construed as,
professional, legal or tax advice. To determine your
individual tax situation and specific needs, please
consult a professional tax advisor.
* Information contained in these sections merely
highlight some benefits. There are risks involved with
all investments that could include tax penalties and
risk/loss of principal.
State Disclosure - The LPL Financial representative
associated with this website may discuss and/or transact
securities business only with residents of the following
states: AK, AR, AZ, CA, CT, FL, HI, ID, IN, MN, MT, NC,
NH, NJ, OH, OR, TX, VA, WA
Advisors will become registered in the respective state,
prior to any direct communication with perspective
customers, who are located in states in which the
advisor is not registered.
State Disclosure - The LPL Financial representative
associated with this website may discuss and/or transact
securities business only with residents of the following
states: AK, AR, AZ, CA, CT, FL, HI, ID, IN, MN, MT, NC,
NH, NJ, OH, OR, TX, VA, WA
Advisors will become registered in the respective state,
prior to any direct communication with perspective
customers, who are located in states in which the
advisor is not registered.
|
Home
Site map
A rollover to IRA occurs when you retire or change
employers and then choose to move or "rollover" your 401k into a
new IRA. This process of relocating a 401k at your previous job
into an IRA is referred to as a 401k Rollover. We are experts
with all of the IRA rollover rules. Give us a call to get
started today.
