“How Do I Do a Rollover?”

Ever wonder that? Of course!

If a financial advisor had a $1 bill for every time they were asked that they would be rich. Um, they already are so scratch that. This article will allow you to walk away with understanding pretty much all the particulars of IRA rollovers with basically all the guidance the IRS provides.

When you roll over a retirement plan distribution, you generally don’t pay tax on it until you withdraw it from the new plan. By rolling over, you’re saving for your future and your money continues to grow tax-deferred.

If you don’t roll over your payment, it will be taxable (other than qualified Roth distributions and any amounts already taxed) and you may also be subject to additional tax unless you’re eligible for one of the exceptions to the 10% additional tax on early distributions.

How do I complete a rollover?

1. Direct rollover — If you’re getting a distribution from a retirement plan, you can ask your plan administrator to make the payment directly to another retirement plan or to an IRA. Contact your plan administrator for instructions. The administrator may issue your distribution in the form of a check made payable to your new account. No taxes will be withheld from your transfer amount.
2. Trustee-to-trustee transfer — If you’re getting a distribution from an IRA, you can ask the financial institution holding your IRA to make the payment directly from your IRA to another IRA or to a retirement plan…