 | Chris Senecaut is a Financial Representative for Modern Woodmen Fraternal Financial. As a company they will be lowering their rates effective December 27, 2011. All transfers must be made by that date to get their 3% guarantee and we will still have their guaranteed return of principal. Chris looks forward to helping you get through this economic downturn and prosper in the future. If you would like to learn more please call 620-724-0833. |
Banking & Finance
2011-12-05 15:24:04
Don’t short change your retirement savings. Benefit from a rollover IRA Part 2
Q: What should I do with the money in my former employer’s retirement plan?
A: Last month, we talked about weighing the decision and the benefits of Rolling your retirement plan assets to a Rollover IRA.
In addition to the IRA, you can also roll over proceeds from a Roth 401(k) plan or Roth 403(b) plan directly to a Roth IRA. You may be able to make a direct rollover from traditional (pre-tax) 401(a), 401(k), 403(b) and governmental 457(b) plans directly to a Roth IRA, if your plan allows for this type of transaction. Please note: This transaction is subject to ordinary income taxes.
Direct Rollover – Assets from your employer’s qualified plan are rolled directly to your
IRA. You don’t receive the distribution.
Indirect Rollover – The employer distributes the retirement assets to you and withholds 20 percent of the proceeds for federal income tax purposes. To avoid taxation and a possible 10 percent federal penalty, you must roll over your gross distribution, including any amount withheld for taxes, to your IRA within 60 days after you receive it.
