Q:
Which of the following statements regarding rollovers versus transfers of IRA accounts are true?  
I. Rollovers are limited to one per year
II. Transfers are unlimited
III. Rollovers must be accomplished within 60 days
IV. Transfers may only be done semi-annually
   
A) I, II, III
B) I, IV
C) II, IV
D) I, III
A:
The correct answer is A)
When an individual moves “qualified” (pre-tax) money from, for instance, a pension plan into an IRA, there are two choices; rollover or transfer. If the individual takes a check from a pension plan, he has 60 days to get the funds into the hands of an IRA trustee without incurring a penalty. There is a one-time-per-year limitation on rollovers. If the individual finds a new trustee for the IRA and has the trustee of the pension plan directly transfer the funds, there is no limit to the number of transfers in a year.

RELATED FAQS

  1. No results found.
RELATED TERMS
  1. Rollover IRA

    A special type of traditional individual retirement account into ...
  2. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  3. Rollover

    A rollover is when you do the following: 1. Reinvest funds from ...
  4. IRA Transfer

    The transfer of funds from an Individual Retirement Account (IRA) ...
  5. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  6. Eligible Rollover Distribution

    A distribution from an IRA, qualified plan, 403(b) plan or 457 ...
Hot Definitions
  1. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  2. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
  3. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
  4. Retained Earnings

    Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested ...
  5. Demand Elasticity

    In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. ...
  6. Dark Pool

    A dark pool is a private financial forum or exchange for trading securities.
Trading Center