Like many Americans, you may own an IRA. One of the most common misconceptions among IRA owners is that they must keep their IRA where it is. When in fact, nothing could be further from the truth.
As an owner of an IRA, you have complete control over where you want to invest your IRA funds. Especially if you are unhappy with its current rate of return or the service you are receiving from the institution where your IRA is presently held. You can transfer your IRA to another IRA qualified investment without penalty or having to pay any income tax. This is done via an IRA Rollover or a Direct Transfer.
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Annuity products are a safe and secure alternative - and with interest rates that are better than most bank CDs, Savings Accounts or Money Market Funds. Also, if your IRA is currently in a Mutual Fund and you are concerned about the risk to your principal, an Annuity is an excellent way to guarantee your principal with an opportunity for greater growth.
In these uncertain times, protecting your nest egg and earning a competitive return on your IRA is more important than ever. With annuity products offered by AnnuityAdvantage, your IRA funds grow without the risk associated with the stock market and at a higher interest rate than is generally offered by Bank CDs, Savings Accounts or Money Market Funds!
How Do I Do an IRA Rollover or Direct Transfer?
IRA Rollover
If you want to rollover an IRA, either Traditional or Roth, you need to request a check from the current custodian or institution that handles your IRA. That check will be made payable to you personally. You are then free to do what you want with that money. As long as you put the money from the old IRA into a new IRA within 60 days, your IRA remains intact and you won't owe any federal income tax or tax penalties on the money. So, as you can see, it's important to make sure that the money is put back into your new IRA account within 60 days. The IRS allows you to "Rollover" your IRA in this fashion, once every 12 months.
Direct Transfer
In many cases you may wish to transfer your money directly from one IRA custodian to another. By doing a "Direct Transfer" you avoid the risk of owing any federal income tax or tax penalties and you don't have to worry about the 60-day requirement. Unlike a "Rollover", which can only be completed once every 12 months, the IRS does not limit the number of times you can "Transfer" your IRA.
If you would like to learn more about or pursue an IRA Rollover or Direct Transfer, please call us toll-free at 1-800-239-0356.
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