Which of the following statements regarding rollovers versus transfers of IRA accounts are true?  

By Investopedia Staff AAA
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. Sometimes investment banking firms allocate shares of hot issues to the personal ...

    The correct answer is a) Spinning is the act of selling hot issues to the personal accounts of corporate officers which in ...
  2. Donald has been putting aside money for his retirement into a Roth IRA for six years.  Although ...

    The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
  3. A 7-year, 6% coupon callable bond is currently trading at 96.25.  The ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  4. According to SEC Release IA-1092, which of the following would NOT qualify as an ...

    The correct answer is C). SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment ...
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Professionals

    Should You Add A Securities License ...

Trading Center