UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 272102  
Subject: Re: roll overs Date: 10/11/2012 1:18 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Fuskie has explained it well, but, let me say it another way to make sure you are not confused.
First of all, the source of information about IRAs is IRS Publication 590.
The term “rollover” is generally used when a 401k (or similar) account is moved to an IRA or sometimes when a change is made to the custodian that holds an IRA.
The rule you are perhaps referring to is the fact that if money is taken out of a tax deferred account (401k or IRA) you have 60 days to put it back into another tax deferred plan or you will be taxed on the amount and perhaps be subject to a penalty.
Within a tax deferred account money can be moved between investment without penalty or being subject to tax. So you can sell one fund and replace it with another or with individual stocks, bonds, CDs, etc.
Transactions of buying, selling, and transferring investments within a taxable account does create a taxable event so you would be subject to capital gains (if any) tax.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.