IRA rollover

Individual Retirement Account Rollover

The transfer of funds from a retirement account to an IRA. This usually occurs when an account holder takes a new job or otherwise wishes to take advantage of the tax benefits an IRA offers over, say, a 401(k). Most IRA programs only allow one rollover per year; with a Roth IRA, there is an income limit beyond which a rollover is not allowed. An IRA rollover may be accomplished through a direct transfer or by check; however, a check transfer brings a 20% withholding charge, so account holders are advised to make direct transfers. See also: Automatic Rollover.

IRA rollover

Reinvestment of a lump-sum distribution from an IRA when physical receipt of funds has been taken by the investor. The lump-sum distribution must be deposited in an IRA rollover account within 60 days of receipt to escape taxation. Compare IRA transfer.

IRA rollover.

If you move assets from an employer sponsored retirement plan to an IRA, you've completed an IRA rollover.

You owe no income tax on the money you move if you deposit the full amount into the new IRA within 60 days or arrange a direct transfer from the existing account to the new account.

If you're moving money from an employer's retirement plan to an IRA yourself, the plan administrator is required to withhold 20% of the total.

That amount is refunded after you file your income tax return, provided you've deposited the full amount into the new account on time, including the 20% that's been withheld. Any amount you don't deposit within the 60-day period is considered an early withdrawal and you'll have to pay tax on it.

You might also have to pay a penalty for early withdrawal if you're younger than 59 1/2. But if you arrange a direct transfer from your plan to the rollover IRA nothing is withheld.

References in periodicals archive ?
NEW YORK -- DWS Investments, the US retail unit of Deutsche Bank's Asset Management division, today announced the launch of DWS Rollover Central, an online resource to help guide retirement plan participants through the IRA rollover process.
Many new tax laws have become effective for 2014, including rules for health insurance, capitalization of business property, personal and dependent exemptions and IRA rollover rules, among others.
One of the drivers of the IRA rollover online trend is firms are communicating more with investors about the decisions they can make with their former 401(k) plans, Dolan said.
2000-36, the IRS approved a company's plan to make an IRA rollover the default option for cashed-out benefits.
Since many sponsors are concerned that "in-plan" options such as income annuities will lead to added fiduciary responsibility and increased plan complexity, Vanguard Annuity Access will be offered to participants as an IRA rollover option.
As an article on the Regal Assets Gold website explained, the Regal Assets company is well-known for being a reputable and reliable company that has helped many retirees with a gold IRA rollover.
According to Rice, recent legislation making it possible to convert traditional IRAs into Roth IRAs has the additional potential to intensify the race by industry to capture IRA rollover assets.
The IRS had previously indicated that, if multiple designated beneficiaries were involved in an IRA rollover, the life of the oldest beneficiary would control the required distribution for all.
More on Fortress Gold Group and its Gold IRA rollover plans or other investment tools is available at https://www.
This means, in effect, a 20% penalty on early withdrawals from a Roth IRA rollover that took place in 1998.
Sun Life's "Ready to Roll Client Seminar Program" helps advisors capitalize on the growing use of IRA rollover opportunities.