Frequently Asked Question

September 10 2008 | Filed Under ยป , ,

I want to close my IRA account. What percentage will I lose to tax?

You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). You would need to check with your current employer to determine if it will allow the rollover. This way, you will keep the amount in your retirement nest egg and defer paying incomes tax on the amount.

If you withdraw the amount, it will be taxed based on your tax bracket. Your tax preparer should be able to tell you your tax rate.

To learn more, read Common IRA Rollover Mistakes.
by

Denise Appleby

Denise Appleby
Denise Appleby is founder and owner of Appleby Retirement Consulting,which provides technical consultation, content, coaching, writing, editing and training services on related topics.


With more than 14 years of experience in the IRA and defined-contribution plans fields, Appleby has held several senior retirement-plan related positions with Pershing LLC, which included vice president of plans products and services, retirement plans manager, trainer, training manager, compliance consultant, technical help desk manager and writer.
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