Saturday, December 16, 2017
Loading
IRA Transfers and Rollovers

ira transfers and rollovers

Money in an existing IRA or Qualified Plan (401k or other) can be moved to a GoldStar Self-Directed IRA by a transfer or rollover. Simply open an IRA at GoldStar and authorize the transfer. GoldStar will contact the previous institution and manage the transfer of funds. Special rules apply if you have reached age 70 ½; please check with the previous trustee or custodian to see if there will be fees or penalties.

IRA rollovers require reporting to the IRS. Time limits and other restrictions also apply. IRA transfers do not require IRS reporting and there are no restrictions on how often you can transfer funds. You should always seek competent tax advice before taking a distribution or conducting a rollover.

Below are general instructions for you to comply with to ensure your rollover and/or transfer is completed successfully:

DIRECT ROLLOVERS:

Eligibility for a direct rollover will be determined by your employer or its plan administrator. For your direct rollover to be successful, your employer’s plan and/or the provider of your Qualified Retirement Plan (i.e., mutual fund company, brokerage house, trust company, insurance company) may have additional requirements and/or paperwork necessary to rollover your retirement plan regardless of the paperwork submitted on your behalf by GoldStar. Please contact your current plan provider for their list of requirements. Your Qualified Retirement Plan funds will not be distributed until all requirements are satisfied.

TRANSFERS:

Contact your current IRA Custodian or Trustee first and inquire as to what requirements and/or paperwork is necessary to transfer your IRA. Most companies will honor GoldStar’s IRA transfer paperwork signed by you; however, an increasing amount of companies are now requesting verbal liquidation of the account by the customer via telephone prior to the transfer. Please contact your local broker and/or current Custodian to confirm if verbal liquidation instructions are required. Your transfer may not be completed unless this request is satisfied.

TRADITIONAL VS. ROTH IRA

  • Traditional IRA (tax-deferred account) – A retirement account designed to hold your investments in a tax-deferred shell until funds are withdrawn. Contributions made to the account are pre-tax and tax deductible.
  • Roth IRA (tax-free savings account)A retirement account where contributions are made with after-tax dollars and are not tax deductible. All qualified distributions after age 59 1/2 are tax free.

Anyone under age 70 1/2 who has earned income can contribute to a Traditional IRA each year. Anyone, regardless of age, who has earned income below certain thresholds, can contribute to a Roth IRA each year. The maximum contribution for 2010 is $5,000 with another $1,000 allowed for those 50 and over.

Your tax advisor can help you determine which type of IRA is most appropriate for you.

FDIC NOTICE: IRA and/or Bond investments represented on this website are not FDIC-insured, are not guaranteed by GoldStar Trust Company, and involve risk including possible loss of principal. If held in a GoldStar IRA or GAMMA account, the un-invested cash portion is FDIC insured up to $250,000.