Ira Rollovers

Written by Jacey Harmon
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IRA rollovers are the tax-free transfer of funds from a previous retirement account to a new IRA. One situation that comes to mind that calls for IRA rollovers is in the case of moving from one place to another. Your current financial advisor may not have a branch in your new location requiring a transfer of funds to a new custodian. However, moving is not the only reason for IRA rollovers.

Reasons to Consider IRA Rollovers

IRA rollovers are an acceptable option if you are not satisfied with the service you receive from your current advisor. Lack of communication between you and your advisor is a good reason to consider an IRA rollover. The performance of your investments and variety of investments available to you can play a role in determining an IRA provider. Lower transaction and commission costs may be another attraction to IRA rollovers.

One may want to consider rolling over a traditional IRA to a Roth IRA. A traditional IRA includes the benefits of deductible contributions and tax-deferred growth. Roth IRA contributions are not tax deductible but investments also grow tax deferred and withdrawals at retirement age are tax free. There are several things to consider when determining to roll a traditional IRA into a Roth IRA. A licensed financial advisor will be able to help determine if these kinds of IRA rollovers are right for you.

IRA rollovers include transferring funds from 401Ks, SEP plans, or any retirement plan. You can only transfer funds from qualified plans into a traditional IRA; you cannot transfer funds into a Roth IRA. However, all traditional IRAs, no matter how funded, may be rolled into a Roth IRA. IRA rollovers offer a viable option when deciding to streamline your retirement accounts.


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