Table of Contents
That depends on your particular needs and circumstances. Here are some reasons you might want to roll over distributions to your IRA:
- You want to, or have to, take a distribution from your employer’s plan and want these funds to continue to grow tax-free in your own IRA.
- As a self-employed individual, you are terminating your Keogh plan or retiring from business and want to continue the tax shelter for these distributions.
- You are the beneficiary of a deceased person’s retirement plan and want to continue the tax shelter for these distributions in your own IRA.
Here are some of the disadvantages of an IRA rollover:
- Rollovers from company or Keogh plans may take away your spouse’s right to share in plan assets.
- IRAs can’t claim the limited tax relief allowed on lump-sum distributions.
To avoid tax hassles, rollovers should be done between the trustees of the plans involved. In other words, the check should not be made out to you personally, but to the trustee of the rollover account.
Retirement Plan Distributions: When To Take Them
Retirement Plan Distributions: How To Take Them
Retirement Plan Distributions: Frequently Asked Questions
Social Security Benefits: How To Get The Maximum Amount
Social Security Benefits: Frequently Asked Questions
Survivors Benefits: A Guide To This Often overlooked Insurance Add-On
Your Pension: What You’re Entitled To
Reverse Mortgages: How They Can Enhance Your Retirement
Tap Your Retirement Money Early and Minimize Penalties
Retirement Assets: Frequently Asked Questions
Annuities: How They Work and When You Should Use Them
Annuities: Frequently Asked Questions
Traditional vs Roth IRAs: Frequently Asked Questions
Roth IRAs: How They Work and How To Use Them
How Much Will I Need To Save For Retirement?
Social Security Retirement Income Estimator
How Much Can I Contribute To An IRA?
Should I Convert To A Roth IRA?
What Is My Projected Required Minimum Distribution?
When Should I Begin Saving For Retirement?
Becoming A Millionaire