Navigation       Home                            Contact                           Link

AMAZONTAGHERE6

 

ARTICLE PREVIEW

How To Ask The Waitress Out
If a person is attracted to a waitress and would like to ask her if she would like to go out on a date, be sure that the manager is not around. It is all up to the person on how he will approach the...read more

How to Choose the Best Color Contact Lenses
Decided to change your eye color with colored contacts and don't know which ones to choose? Find out what the color contacts market has to offer and which lenses will make your eyes look most...read more

How To Discipline During The Terrible Twos
You didn't think it would happen, but it did. The sweet little angel that you were raising has turned into a hell raiser almost overnight, a being who seems to defy you at every turn and who...read more

HOME >> How to transfer a retirement account

 

YOURIMAGEHERE3

How to transfer a retirement account
By Jakob Jelling

 

 

Make sure you know where you intend on moving your money in advance!

As you probably know, an individual retirement account requires that you decide where your money is going to be invested in order to work with the retirement account. Essentially this is called a "custodian" for your investments. You should generally chose a safe custodian - some of the most common ones are mutual funds, savings accounts, and bonds. While you should definitely be careful as to which custodian you choose for your retirement account, don't worry! You are not stuck with the same investment until you retire.

However, unlike a normal investment, you should keep in mind that you are only allowed to transfer or "roll over" your retirement account once a year. Also, there are some very specific rules that you need to follow. It is generally a good idea to find out how to transfer a retirement account before you even begin to invest in one. That way if you ever need to do a roll over in the future, you'll be ready.

First of all, you should probably have a good idea of where you want to invest the money before you start the rollover process. The reason for this is that after you take the money out of your original IRA custodian, you'll only have 60 days to put it into the new custodian fund. If you take too long, then you will be subject to a large penalty tax - and penalties are definitely not worth the few extra days that you take!

Something to keep in mind is that if you do a roll over, you will need to report that at the end of the year. Just like anything else that is involved with your finances, you should make sure that you keep track of which custodians go with your individual retirement accounts and how much money is in each account.

If you are going to do a smaller transfer from one existing IRA to another, then it is possible that you won't even have to report your transfer. These transfers are also tax-free. This is a good idea if you do not want to change all of your money from one custodian to another, but you think that it would be a good idea to change how much money you have in each IRA.
About the Author

Jakob Jelling is the founder of Cashbazar.com. Please visit his website at http://www.cashbazar.com/personal-finance.shtml and learn how to take control over your personal finances.

Return to HOME to read more articles
 

RSSTAGHERE4

 

COPYRIGHT © 2009-2015 HOW TO - ALL RIGHT RESERVED

 

CLICKBANKBUDDYTAGHERE5