Series 62

Retirement Plans - Rollover Vs. Transfer

An individual may want or need to move their IRA from one custodian to another. There are two ways by which this can be accomplished. An individual may rollover their IRA or they may transfer their IRA.

Rollover

With an IRA rollover, the individual may take possession of the funds for a maximum of 60 calendar days prior to depositing the funds into another qualified account. An investor may only rollover their IRA once every 12 months. The investor has 60 days from the date of the distribution to deposit 100% of the funds into another qualified account or they must pay ordinary income taxes on the distribution and a 10% penalty tax, if the investor is under 59.5.

Transfer

An investor may transfer their IRA directly from one custodian to another by simply signing an account transfer form. The investor never takes possession of the assets in the account and the investor may directly transfer their IRA as often as they like.



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