Self Directed IRA And 401k Rollover

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

PowerPoint Presentation:

What is a Self-Directed Rollover? A self directed rollover involves transfer of money from one retirement account to another. A rollover may involve moving your funds from your 401(k) or 403 (b) accounts to a self-directed IRA account and even vice versa. There are two ways in which you can execute a roll over : 1. Classic Rollover 2. Direct Rollover

PowerPoint Presentation:

The classic rollover happens in two steps: Step 1 - The entire money from one of the account is withdrawn and transferred to the investor bank account by issuing a check. Step 2 - The investor transfers the money received, to the new retirement account. 401(k) A/c Investor Bank A/c IRA A/c

PowerPoint Presentation:

Direct Rollover – The modern way of rollover is a direct transfer, which is more efficient. In direct transfer the money is transferred directly to the new account and no withholding tax would apply. Thus the money does not pass through the investor and is trustee to trustee transfer. 401(k) A/c IRA A/c

PowerPoint Presentation:

401(k) Self Directed IRA Self Directed Rollover From 401(k) To IRA “ WHY ” By rolling over you avoid cashing out your 401(k) plan, which is very expensive. Cashing out of your retirement plan prematurely can cost you upto 45% of your investment, due to taxes and early withdrawal penalties. If you rollover your money from 401(k) into a self-directed IRA, you get greater control and wider choice of investment options.

PowerPoint Presentation:

IRA Self Directed 401(k) Self Directed Rollover From IRA To 401(k) In some cases, people want to transfer the money from their IRA to 401(k) plans. Some of the reasons why people may take such a move are : * They have too many retirement accounts and want to consolidate to avoid stress of managing so many accounts. * They do not have the time or resource to manage their self directed IRA .

PowerPoint Presentation:

If you are thinking to transfer funds form your IRA to 401(k), you should have participated in your current IRA account for at least 2 years, else the cost of rollover is hefty. Besides, you also need to see that your 401(k) or 403(b) accounts allows you to take such a rollover as according to the laws you can only rollover tax deductible contributions and earnings. So, in the case, you have also made certain non-deductible contributions to your IRA account, you will not be allowed to rollover the entire amount to your 401(k) account . Besides, you must also keep in mind that inherited IRAs are not allowed a rollover to 401(k) accounts. Experts suggest people to think hard about the investment options and fees in the 401(k) plan before making such a move. Also keep in mind that you can withdraw funds from IRA whenever you need or desire. Though early withdrawal attracts taxes and penalties, but you can still do so if needed. On the other hand, you need to meet certain very hard guidelines for withdrawing money from your 401(k) account.

authorStream Live Help