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Rollover IRA

Rollover IRA

When you leave an employer for a new job or to retire, you have choices to make regarding your retirement account. You may choose to roll over the funds you have accumulated into a rollover IRA. A rollover IRA is used to hold assets that have been distributed from an employer’s retirement plan such as a 401(k) or Profit Sharing Plan. Before rolling over your retirement account from your employer, you should consider all your options to determine what is best for you. Consider the items addressed in The IRA Rollover: 10 Tips to Making a Sound Decision provided by the Financial Industry Regulatory Authority (FINRA).

There is no limit on the amount of money you can roll over. This type of an IRA can be kept separate from your Traditional IRA contributions to allow you to possibly roll it back into a new employer's plan.1 

 

Benefits

  • Ensures the tax-deferred status of your retirement plan(s)
  • Preserves your right to roll over your savings into another employer-sponsored retirement plan at a later date if you choose
  • Can consolidate retirement investments into one account
  • A direct rollover helps you avoid tax withholding on your distribution (and the 10% penalty if you’re not yet 59½).

Considerations

  • IRA assets cannot be borrowed.
  • Annual IRA fees may be applicable.
  • Distributions from an IRA or a retirement plan may be deposited to an IRA or retirement plan within 60 days.
  • You generally cannot make more than one rollover from the same IRA within a one-year period. 
 

Details

  • Eligibility

    Anyone with a qualified distribution from an employer-sponsored plan

  • Income Limits

    No limits

  • Annual Contribution Limits3  

    $5,500 under age 50 
    $1,000 additional catch-up contribution if age 50 and over
    You may also roll over most employer-sponsored retirement assets or other eligible IRA assets at any time, with no annual limit. 


  • Tax Considerations*

    No taxes are due at rollover if completed within 60 days of receiving withdrawal from employer-sponsored plan; however, withholding may apply unless a direct rollover to your Rollover IRA is requested with your employer.

  • Types of Investments

    Stocks, bonds, mutual funds, exchange-traded funds (ETFs), U.S. Treasuries, Brokered CDs, unit investment trusts (UITs). and annuities

Disclosures

  1. Check with your Financial Advisor and tax advisor for the appropriate strategy for you.

  2. There are some exceptions to this, consult your tax advisors for specific details

  3. Limits apply for 2017 and are subject to change in the future. 

*Consult your tax or legal advisor for tax planning relating to your current situation.

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The information provided on this website is not meant as a recommendation or endorsement of any specific security or strategy. An individual’s situation can vary; therefore the information provided above should be relied upon only when coordinated with individual professional advice.

Mutual funds, annuities, and other investment products:

Not FDIC-insured

May lose value

No bank guarantee

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