Rollover IRA

IRA rollovers: you can take it with you.

lc-inv-IRA-rollover-2238-articleYou're on the job, setting aside money in your employer-sponsored retirement plan. You decide to terminate employment or retire. If you are under age 59 ½ and take a lump sum withdrawal, it may be subject to an additional 10% early withdrawal tax. This withdrawal will also be subject to ordinary income tax. Rolling this money over to your IRA may be a better solution.

What is a rollover IRA?

An IRA rollover occurs when you transfer money from employer-sponsored retirement plans into a traditional or Roth IRA. In a rollover, you’re keeping your money tax-deferred until you choose to withdraw it. The rollover option might also give you more investment freedom – options that may not have been available under your employer-sponsored plan. You can also use it to consolidate multiple accounts which may help you manage them more easily.

Keep in mind that your IRA may be subject to market risks, including possible loss of principal.

Three common reasons to rollover are:

Keep in mind that there are some IRA rollover rules:

Rollover considerations

There are some very good reasons to consider rolling money over into an IRA:

Setting up an IRA rollover

Rolling over an IRA can be quick and easy. An investment professional can help. Talk with your advisor to:

Learn more

Have more questions about setting up a rollover IRA? Contact your advisor today.

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