When it comes to taxes, most people want to pay as little as possible by rolling over to another account. Failing that, they’d like to postpone paying taxes as long as possible. For this reason, most of people rollover to Individual Retirement Accounts (IRAs) for their retirement investing needs. (more…)
Posts Tagged ‘IRA Rollovers’
Understanding IRA Rollover Tax Implications
Posted by admin on March 16th, 2010
Tax planning should be a crucial part of your retirement savings strategy, as simple tax mistakes can easily cut the balance of your retirement accounts in half. Let’s look at some of the most common situations that can trigger IRA rollover tax implications within your retirement plans.
IRA Rollovers from Employer-Sponsored Plans
The most common situation that triggers an IRA rollover tax is the rollover process itself, where funds are moved from an old employer-sponsored 401k or 403b account to a traditional or Roth IRA. Account holders have two major options when initiating an IRA rollover – a direct rollover or an indirect rollover. (more…)