Thinking about rolling over a qualified retirement plan into an IRA?
Go right ahead. It’s usually a smart move because a rollover lets you keep deferring taxes on the rolled-over amount.
But be careful. If you don’t follow the IRS’s rules, you could wind up in an IRS agent’s office.
Want to learn how to handle retirement plan and IRA rollovers the right way?
Read my new article titled Tax Tips: Retirement Plan and IRA Rollover Advice.
Three ways our fact-filled article can help you:
- We’ll tell you how to choose the right kind of rollover. There are two types of transfers you can use. The “direct” (trustee-to-trustee) rollover and the so-called “traditional” rollover. We strongly advise going with the direct rollover method. You’ll find out why when you read the full article.
- We’ll explain what happens if you fail to arrange for a direct rollover. The consequences are very bad. You see, you’ll receive a check made out to you personally from your qualified plan. And then you’ll discover that 20-percent of the taxable amount has been withheld for federal income taxes. And that’s just the start of your problems as you’ll learn when you read the full article.
- We’ll warn you about the one-IRA-rollover-per-year rule. You can take money out of a traditional IRA and then roll it back into the same IRA. And you won’t have to pay any penalties as long as you put the money in the bank within 60 days. If you take more withdrawals within a 12-month period, you’ll be hit with a hefty penalty. You’ll learn how to stay out of trouble when you read the full article.