A Look At The IRA Rollover
If you have an IRA this is the article for you. What is an IRA rollover? An IRA rollover is the act of transferring money for your retirement account into an IRA. You can rollover the money into a Roth IRA or a traditional IRA. It is also possible to rollover a IRA from one IRA account into another IRA account.
If you want to make this rollover there are a couple of options that you have to do this. If you are transferring with the use of a check, there is a 20% charge called the withholding penalty. This penalty can be avoided if the rollover is made from one custodian to the next. Most IRAs allow you to make only one rollover per year. The one-year period starts on the day of the previous year’s rollover.
Many of the ira rollovers that are handled are caused by changing jobs. An employee must transfer the money from the IRA within 60 days of the release of funds. There are penalties to the employee if this transfer is not made within the executed time frame that is allotted, although the IRS, in some cases, will grant a waiver for these occurrences. It is also important to know that there are also penalties if the transfer takes place before the individual with the account is under the age of 59 ½. This fee is 10%. You can get other details on http://www.ira-to-gold.com/.
For those who are 70 ½ years old the transferred IRA cannot include the Annual Required Minimum Distribution (RMD) amount. So, this amount should be deducted before any money is chosen to roll over. While this may seem like a hassle to some people it is really done with the best interests of the account holder in mind, as it can avoid penalties that can occur because of the rollover taking place.
There are many rules that govern the IRA that you must understand fully before attempting to make any type of rollover of the account. These are just a handful of those rules, so do not stop short of learning all of the rules that are in place. Additionally those rules must be followed precisely to avoid penalties and other fees as well as other possible consequences of the IRS. It is always advisable that you speak to an IRA specialist before attempting to make any type of IRA rollover. These professionals will ensure that your rollover takes place as smoothly as possible.