Taking the Mystery Out of Rollovers
What is a "Rollover"?
A rollover is basically defined as taking money from one account and placing it into another account. Usually people will rollover an account that is about to either mature or expire to keep the integrity of their retirement portfolio intact and to offset any potential tax obligations. The most common rollovers are the Roth 401k rollover, the Roth IRA rollover, a Traditional 401k rollover the 403b rollover and the Traditional IRA rollover.
The 60 Day Rollover Rule
Most rollovers are subject to a 60 day rollover rule. This means that the tax laws say that most rollovers must occur within 60 days of your receipt of the funds. Because of this rule, you have a short period of time to set up the new retirement account and get the funds invested with your chosen savings vehicle. If you are either planning a rollover in the near future or have an account about to expire, please contact a rollover specialist. This simple act can save you thousands of your retirement dollars.
Basic Rollovers Strategy
There is a good strategy to follow when faced with the need to rollover an investment. Being prepared and following a sound strategy can save you a substantial part of your savings. This plan would take into consideration the time the rollover has to occur, the account you are liquidating, the set up of the new account, then a seamless transfer of your savings account fund.
The Timing of Rollovers
You already know when your IRA or other fund will expire or mature, so you'll need to decide what your new investment vehicle will be. With all the different options, it s best to speak with a good financial counselor first. Make certain this financial planner knows when your rollover must occur because there are some time constraints involved with setting up the mechanics of the transfer to reduce potential impact on your account.
Rollover Requirements of Your Current Account
Some accounts are set up with specific requirements regarding rollovers. If you don t know about yours or just don t understand the rules regarding your account, please seek professional advice. If the rules and requirements aren't strictly adhered to you can be subject to some pretty stiff penalties.
Setting Up Your Rollover Account
Before your old fund expires, you should have your new account set up. Make sure you have your account in place to accept the funds in accordance with your financial plan. The account receiving the rollover funds should be arranged with your specific needs considered and taken care of. Again, please seek professional guidance in all matters regarding your rollover.
Getting Free Rollover Advice
It can be expensive to get a financial strategist to help you plan your rollover. If possible, seek out a professional rollover specialist that will offer free consultations. If you have no relationship with this person, then the advice you get is likely to be sound. Of course, we offer these free financial needs consultations and have many specialists in rollovers ready to advise and assist you. Simply fill out the form above and we'll be in touch.