Financial Education for all ages, click here. |
 |
| Individual Retirement Accounts Rollovers |
A rollover is a way to move money from one retirement plan to another without paying taxes or penalties. There are two ways to complete a rollover: directly and indirectly. A Direct IRA Rollover moves your money directly from your former employer to your IRA - you never touch the money. This avoids tax withholding and usually gets your money into your new account faster. With an Indirect IRA Rollover, the company you're leaving writes a check to you and you have 60 days to deposit the money with your new custodian. There are two major drawbacks to this approach: • The company making the distribution must withhold 20% for federal income taxes. If you do things correctly, you'll eventually get it back when you file your tax return. • To avoid taxes and penalties, you must deposit the entire amount of the distribution in your IRA - meaning you have to come up with additional money equal to the 20% that was withheld. We can make it simple. |
|
| IRS information and requirements on rollovers |
| Back to IRAs |
| Become a member |
P.O. Box 900 - Radcliff, KY 40159-0900
Troubleshooting | Privacy Policy
• Fort Knox Federal Credit Union is not responsible for content at third party links.
• Your savings federally insured to at least $250,000 and backed by the full faith & credit of the U.S. Government.
