An IRA rollover can be a great way to build a nest egg for your new business venture. You have worked for the same employer for 15 years and are now ready to leave to start your own business. Great! Now continue to build wealth by transferring your retirement assets into an IRA rollover account.
There are two IRA rollover options: (1) direct transfer and (2) 60-day transfer. A direct transfer is the movement of money from one institution to the next with the money coming into the owner’s possession. While generally the safest and easiest method, a direct transfer is not always possible. With a 60-day transfer, the owner receives a check from the current administrator which must be deposited into a new IRA within 60 days to avoid tax penalties. Consider the following benefits of an IRA rollover account:
1. IRS tax laws allow you to rollover funds from one IRA to another without being taxed.
2. Transferring money into an IRA rollover account is easy.
3. You control how your money in an IRA rollover account is invested.
Benefit from an IRA rolloverWith an IRA rollover account, you have the potential to gain considerable wealth. Subject to your custodian's investment offerings, you can invest your money any way you desire. While you have free reign over your funds, you cannot withdraw money from your IRA rollover account without incurring tax penalties.
Find IRA rollover optionsMake sure you ask all of the pertinent questions about inheritance IRAs, direct transfers and 60-day transfers and other IRA rollover options so that you have enough IRA rollover information to make a well thought out decision on how you plan to manage your money.
Choose an IRA rollover providerCompare provider IRA rollover rates and service options and go with the provider that will offer you the best investment options to make your money grow. Keep in mind that some institutions will not process a direct transfer of funds. Additionally, with a 60-day rollover, 20 percent will automatically be withheld for tax purposes. You can however get these funds back on your tax return as long as you rollover the entire amount.
- With the 60-day IRA rollover, you can rollover the same assets once every 12 months. Consult with your IRA rollover provider for details. In short, this is a preventative measure put in place to discourage individuals from withdrawing and rolling over IRA funds multiple times with a 60-day period.