Have You Completed Your IRA Rollover Correctly?

Published on March 7, 2017

Rolling funds over from one retirement plan to another is not always as easy as it sounds. Direct and indirect rollovers have specific applications and IRS rules, which must be followed carefully to avoid ending up in tax court. Therefore, it is important to know all the ins and outs of the rollover process and to discuss your best strategy with a trusted financial advisor.

One study conducted by the Employee Benefit Research Institute found that 56 percent of workers preferred taking their retirement assets as a lump sum, many of which were destined for IRA rollovers.

Another statistic from Cerulli Associates claims that retiring baby boomers could push the IRA rollover surge to $12 trillion by 2020. This represents a lot of retirement funds that must be handled carefully when moving from one retirement plan to another.

Here are some basic rules about rollovers:

Of course, everyone’s financial situation is different, so any rollover strategy should be researched first.

At Next Generation Trust Services, we are here to help with the rollover process. Whether you plan to establish a new self-directed retirement account with funds to be rolled over or with other funding for your new investments, our professional team can answer any questions and provide assistance. For instance, you can learn more about rollovers and contributions for your self-directed retirement plan with this informational video. If you are “ready to roll” (pun intended), you may open an account using our starter kits which guide you through all the steps and necessary documentation we require to administer your self-directed retirement plan. Please do not hesitate to contact us with your questions at Info@NextGenerationTrust.com or 888.857.8058.