The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Vanguard IRA||Date: 11/16/1998 5:54 PM|
|Author: jvanscoy||Number: 6629 of 77092|
<<I _think_ a rollover is when you go from an employer retirement plan account such as a 401k and move that money to a regular IRA.>>
Actually the IRS calls it a rollover if you take possession of money from one IRA and put it in another IRA. If you have it transferred directly to another IRA it is not called a rollover.
Yes, transfers can be made at any time without any penalties.
If take possession of the money, you have 60 days do a rollover. However, the IRS requires that 20% be withheld as tax. And if you only rollover 80% of the money, you will be hit for taxes and penalties on the 20% that you didn't rollover. Bottom line is to do a direct transfer and avoid problems.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|