Since an IRA is a retirement savings plan that’s traditionally taken from your check before taxes are applied, any time that you’re transferring funds, you’ll want to take into consideration whether or not there will be any IRA rollover tax applied. The answer is that, in most cases, there isn’t an IRA tax if you choose to rollover your funds into a qualified plan and you go with a direct transfer. This is good news for you, but there are some things that you’ll need to do in order to make sure that you don’t end up paying unnecessary IRA rollover taxes. (more…)
Posts Tagged ‘Retirement Plan’
Avoid the IRA Rollover Tax with a Direct Transfer
Posted by admin on March 23rd, 2010
Moving your money from an old employer-sponsored retirement plan – like a 401k or a 403b – to an IRA can be a smart move financially, as these accounts typically offer a wider range of investment opportunity and higher returns overall. However, if you aren’t careful, you could wind up on the hook for a serious IRA tax penalty. Let’s look more closely at how you can avoid this situation. (more…)