What You Need to Know About IRA Rollovers

Whether you’re considering an IRA rollover or are just curious about what IRA rollovers are all about, there are a few basic things to know. First of all, of course, you have to fully understand what an IRA rollover is; “IRA rollover” is a term used to describe a transferring of funds from a savings or retirement account into an IRA. Money can be transferred to a traditional IRA or a Roth IRA and usually involves a direct transfer or the use of a check written by the custodian of the account to the account holder.  There are pros and cons to either option.

With the check option, you can expect to have a 20% withholding penalty assessed before the check is written; there are some ways around this penalty, however, and a professional financial advisor can usually help you to avoid it. Also keep in mind that, in most cases, you can only rollover funds once per year, though again, financial experts can often help you to find ways around the rules.

Because the rollover process is complex and because there are lots of little tricks that can help you, it’s wise to seek professional help before engaging in IRA rollovers. For help with your rollover or with any money-related matter, call on the financial gurus at Platinum Financial Associates of Naperville.

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