Rollover IRA - IRA Rollover Quick Facts

If you are covered by your employer's retirement plan at work and are about to receive an IRA rollover distribution from that retirement plan, you may want to establish a Rollover IRA. There is no age restriction on establishing a Rollover IRA.

Benefits of establishing a Rollover IRA

A Rollover IRA allows you to postpone any current tax liability on the IRA rollover distribution and allows your IRA rollover funds to continue to grow on a tax deferred basis until distributed.

How much can I IRA rollover into my IRA?

All of your employer's retirement contribution to the retirement plan plus your own contributions and earnings on all contributions may be rolled over to a Rollover IRA.

Your rollover IRA contribution must be in cash or in the property you receive, if other than cash. If you receive securities (or other property) from your employer's retirement plan, you may either roll over the securities or you may sell them and roll over the proceeds of the sale within the 60 day time period to a Rollover IRA.

Is there a deadline for Rollover IRA?

In order to take advantage of the tax free IRA rollover provision, you must IRA rollover your distribution into a Rollover IRA within 60 days of receipt.

You may also elect to have your distribution directly rolled over to your Rollover IRA from your employer 's retirement plan. This is called a 'direct IRA rollover'; your employer must give you an opportunity to directly IRA rollover your distribution.

You may also take receipt of the distribution. If you do, you have 60 days from the day of receipt to IRA rollover the amount into an IRA. If you take possession of the funds, your employer is required to withhold up to 20% for federal income tax.