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IRA Rollover Rules

A look at the world of Roth IRA limits and more investment details about these retirement plans.

Finding out about the IRA rollover rules that apply to you is important, so that you can ensure you’re able to make the most of your retirement fund, and ensure that you’ve got plenty of money set aside for when you retire.  What  you’ll find is that basically like anything else to do with finances or taxes, a rollover like this has all sorts of loopholes and pitfalls that can spell certain doom for your fund, if you’re not careful.  That means you always want to be well read, and you want to ensure you go through reputable sources.  You can’t take your retirement lightly, and you want to ensure that you’re totally prepared for when the time comes.  It’s necessary to know the right IRA rollover rules when you’re looking to convert, and that means figuring out how they apply to you.

One of the main reasons for a rollover like this, is if you find that your IRA is being held by a company that charges you much too much, or that doesn’t give you enough benefits.  The government provides for you the ability to find a better service, and to keep your money protected while doing so, so that you don’t have to start your IRA over to take advantage of a new service.  However, there are IRA rollover rules that apply to this, to protect from people abusing the system. That means you’re going to want to know them, so that you can be sure you always follow the rules, so that you can avoid any types of trouble to do with the government.  As the saying goes, you can’t fight city hall, so you want to be careful in following the IRA rollover rules that apply to you, so that nothing goes wrong with your retirement.

When you’re committing to a custodian to custodian transfer, the IRA rollover rules that apply to you are actually fairly simple.  Basically what this is, is when you’re transferring your from one bank to another.  The rules that apply to you here, is just that the money must be transferred between the two places immediately.  That means you have to transfer the money to yourself, and then immediately to the new custodian, so that you can ensure there’s evidence that showed you were just making an appropriate rollover.  Also you’ll have to fill out the IRS’ transfer form as well, so that you can have it on record that this was only done to be a rollover.

However, there are rules determining how fast this needs to be done, and you have to be careful to follow them. One of the major IRA rollover rules that you need to be aware of is the 60 day rule, which dictates that your funds have to be from one back to the next in less than 60 days.  Otherwise you’re going to incur some major fines from the IRS for not keeping your IRA funds in an IRA account.  What’s more, you have to wait at least 1 year until you can make contributions again, after completing a rollover.