IRA Transfers & Rollovers

Moving money from one IRA to another has never been easier. Whether you are dealing with a Roth or Traditional IRA, you can move existing IRA money in one of two ways:

Transfers

Many people prefer to move retirement money as a transfer. Your first step is to go to the bank where you will be transferring the funds. You establish the account there and complete a transfer form. This form is then sent to the institution that currently holds the funds. Remember to leave plenty of time if you are mailing the form.

The funds are sent directly to the receiving bank. In some cases, you may be allowed to carry the check yourself; however that is up to each individual institution. The best part is that you can do this as many times as you want—the IRS places no limits on transfers. No part of this transaction is reported to the IRS, which makes this a favorite with customers.

Rollovers

To complete a rollover, you take the funds from one institution, in a check made payable to yourself, and deposit them into another institution. This transaction may only be done once per year and the deposit must be completed within 60 days of the distribution (withdrawal from the first institution).

This option may be best if you need to use the IRA funds during the 60-day period or if you do not have time to complete the transfer.

A rollover is also used to move funds from your qualified pension plan to a Traditional IRA. Your plan administrator can help you with the necessary forms.