An IRA rollover is the process of moving funds from a qualified retirement plan (like a 401(k) or another IRA) into an Individual Retirement Account (IRA), without incurring taxes or penalties if done correctly.
Types of Rollovers
- Direct Rollover (Trustee-to-Trustee Transfer)
- Funds move directly from the old plan to the new IRA.
- No taxes withheld.
- Indirect Rollover
- Funds are distributed to the individual, who must deposit them into an IRA within 60 days.
- 20% tax withholding applies up front (which must be made up from other funds to avoid penalties).
- Same Trustee Transfer
- Funds move between IRAs held at the same institution.
- Not technically a “rollover” but functionally similar and simpler.
Ready To Take The Next Step?
For more information about any of our products and services, schedule a meeting today or register to attend an educational presentation.
give us a call at 859.309.0349
