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| How to do a Rollover? |
You’ll need to complete the rollover
application. You can do that online. You may also need to complete
a form supplied by your previous employer. Contact your previous employers
today and ask if they have their own additional rollover forms for you
to complete.
Once your application is received and approved, your Rollover IRA account
will be opened to receive your direct rollover from your previous employer’s
retirement plan.
You'll receive confirmation in the mail when your assets have been received
in your Rollover IRA account. |
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| Does it make sense to have more than one Rollover
IRA account? |
| It may if 1) you want to invest in different mutual fund families or different
types of investments, 2) you want to withdraw part of your retirement
funds in equally distributed payments, 3) you want to keep beneficiaries
in separate accounts, or 4) you want the ability to select the IRA account(s)
from which to take the required minimum distribution when you reach age
70-1/2. |
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| How does a Rollover IRA account differ from an
IRA account? |
| There are several types of IRAs – A traditional IRA, a Roth IRA and
a Rollover IRA. The traditional and Roth IRAs have an annual contribution
limit. However, there is no limit to how much you can invest in
a Rollover IRA or how much you can convert to a Roth IRA. |
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| How Do I Rollover if I have received a check? |
Should you receive a distribution check made out to you expect 20% of your money to be withheld for taxes. If you want a direct rollover and time permits, you may want to send that check back to your employer and ask it to send 100% of your eligible retirement distribution directly to your new Rollover IRA account. Inquire first whether your old employer’s plan can and will correctly handle your rollover for you in this way. Remember to open your account with us first so that you will have a Rollover IRA account open and ready to receive your retirement funds.
Or, you can send your distribution check made out to you to your Rollover
IRA account, called an indirect rollover. You may need to deposit your
check and write a new check to your Rollover IRA account. Don’t forget
to add the 20% withheld from your distribution into your Rollover IRA
account from some other source to avoid the early withdrawal penalty.
On the Rollover application indicate that the funds are coming from a
check to be processed as an indirect rollover.
If your distribution check it is made payable to your Rollover IRA account, send this check directly to your Rollover IRA account by FedEx or other overnight mail service, or by certified mail, return receipt requested. |
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| Can I rollover my retirement money if I received
a distribution check? |
| Yes. But, you must rollover those funds within 60 days of your receiving
your pension distribution, called an indirect rollover. Don’t let
that 60-day clock run out. If you do, then expect to pay taxes and may
be even an early withdrawal penalty on your distribution. |
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| Why did my former employer send me only part of
my retirement money? |
| The IRS requires that 20% be withheld from most retirement plan distributions,
unless you do a direct trustee-to-trustee Rollover IRA. With a direct
Rollover IRA no taxes are withheld and 100% of your money will go into
your Rollover IRA account. |
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| I requested a direct rollover but my employer
sent me a check. What should I do? |
If your distribution check is made out to your Rollover IRA account, don’t
worry. Send that check immediately to your Rollover IRA account by certified
mail return receipt requested, or by overnight delivery. Make sure that
the distribution equals your entire account balance, called a lump sum
distribution, to avoid any taxes.
If your distribution check is made out to you, send it back to your previous
employer by certified mail, return receipt requested and insist that they
process a direct rollover for you. If they don’t, you will owe taxes
on the 20% of your eligible retirement plan distribution that was withheld
for federal income taxes. |
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| I thought that I could put only $2,000 per year
in a Rollover IRA? |
| Wrong. You can rollover any amount to a Rollover IRA. For example,
you may rollover $10,000 or more than $1 million to your Rollover IRA
account. This unlimited rollover amount should not be confused
with the annual IRA contribution limit. |
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| How long does the Rollover IRA process take? |
| It depends. Your Rollover IRA account will be set up as soon as you submit
your completed application. Your previous employer’s plan will be
contacted immediately and asked to forward your distribution to your Rollover
IRA account. The processing time for the rollover to be complete depends
basically on how fast your previous employer processes your request for
a direct rollover. The process often takes longer than 6 weeks. Ask your
previous employer how long will it take to send your distribution to your
Rollover IRA account. |
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| Am I required to rollover the pension or retirement
funds that I left with my previous employer? |
| No. Your employer’s plan, however, may provide that you take your
pension funds with you when you leave your job if they are less than $5,000.
If that is the case, you will want to have your pension funds rolled over
directly to a new Rollover IRA. Or, you can do an indirect rollover. |
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| Why does my spouse have to agree to my rollover? |
| In most cases, you must get your spouse’s consent when you select
various retirement plan options. Single participants with retirement funds
left with a former employer may want to do a direct IRA rollover and name
any beneficiary they wish before marrying. |
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| How can I avoid the 10% early withdrawal penalty when taking money
out of my Rollover IRA? |
| The 10% early withdrawal penalty does
not apply to those withdrawals taken: |
| 1. |
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After you reach age 59-1/2 |
| 2. |
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After you die |
| 3. |
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If you are permanently disabled |
| 4. |
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As part of a substantially equally distribution
withdrawal program |
| 5. |
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For certain medical expenses |
| 6. |
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To purchase a new home as a qualifying first
time home buyer (lifetime $10,000 limit) |
| 7. |
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For certain education expenses |
| 8. |
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To pay the IRS subject to a levy |
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| Can any retirement plan (401(k), 403b, 457, Tax
shelter annuity, TSA,
Sep-IRA, SIMPLE IRAs) be converted to a ROTH IRA? |
| Yes, if those plans are qualified retirement plans with only pre-tax monies
in them. If a retirement plan can be moved to a Rollover IRA, then the
Rollover IRA can be converted to ROTH IRA, subject to income limits. |
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| What is a lump sum distribution? |
| A lump sum distribution is the total amount held to your credit in your
employer’s retirement or pension plan paid to you or sent directly
to your Rollover IRA account. |
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