The IRA Rollover Process

Do you have a 401(k) plan from a previous employer? Have you thought about switching your IRA to another financial firm? Do you want to maximize your retirement savings? If you answered yes to any of these questions, you’ve come to the right place. Keep reading to learn about IRAs, how rollover IRAs work, and more.

What Is an IRA?

An IRA (individual retirement account) is one of the most common investment tools to help you save for retirement. There are several types of IRAs, including:

  • Traditional IRA
  • Simple IRA
  • Roth IRA

All types of IRA offer tax-deferred investment growth.

What Is an IRA Rollover?

Put simply, an IRA rollover is the process of withdrawing the proceeds from one retirement plan and then depositing them into another tax-deferred IRA. Most rollover IRAs can be completed electronically – however, due to 401(k) plan complexities, a slower, more manual process may be required.

What Is the Purpose of an IRA Rollover?

The purpose of an IRA rollover is to protect and maintain your tax-deferred benefits. Retirement assets left with a former employer are subject to taxes. Thus, IRA rollovers will help you save for your future and ensure your retirement income continues to grow tax-deferred.

IRA Rollover Process

If you have an IRA that you want to roll over, follow these four easy steps:

Step 1: Open an IRA with a trusted financial institution.

To ensure your tax-deferred money is safe, never have your rollover checks made payable to anyone other than the trusted financial institution you selected.

Step 2: Request a plan distribution from your former employer.
Step 3: Fill out any required plan paperwork – indicate your new rollover IRA information.
Step 4: Deposit rollover check into your new rollover IRA.

Trustworthy IRA Rollover Specialists

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