IRA Rollover
What is an IRA rollover?
An IRA rollover is not generated by annual contributions, but by money that is carried over from a previous individual retirement account. Money that was previously accrued from a retirement plan, such as a 401k plan, can be carried over into a new retirement account or into an IRA that is previously in existence. Combining a regular individual retirement account with a Roth individual retirement account is not permitted.
When am I able to take advantage of an IRA rollover?
If you are no longer employed by a company that holds your IRA, you are given an opportunity to create an IRA rollover. It is important to act on an IRA rollover to avoid negative tax implications.
What are the benefits of an IRA rollover?
An IRA rollover allows you to combine all of your individual retirement accounts that may had been gained through various jobs throughout your career. Instead of wrestling with multiple IRAs, you can enjoy the simplicity of having asingle IRA rollover. One of the biggest advantages of an IRA rollover is that it allows you to continue the tax-deferred luxury you had in your retirement account at your previous place of employment. An IRA rollover that has been executed correctly is not subject to any tax penalties. An IRA rollover increases your investment options, as your previous 401k plan more than likely left you with a limited number of choices. An IRA rollover allows you to put your money in any investment you'd like.
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