Because we are living in an era of downsizing, sound advice on management of accumulated assets is essential. You may decide to maintain tax benefits by utilizing a Rollover IRA.
Here are a few things to keep in mind:
- When you leave a job that has a sponsored retirement plan you have options for managing your retirement assets.
- A Rollover IRA can strengthen your financial security.
- When you Rollover you are moving money from a 401 (k) or another retirement plan into an IRA.
- The distribution rules for a Rollover IRA are the same as the rules for a traditional IRA.
- Contributions and earnings are taxed when withdrawn after age 59½.
- Withdrawals before age 59½ are taxable and subject to an early withdrawal penalty with certain exceptions.
- Withdrawals must begin by the year after you reach 70½ to avoid penalties.