{"id":280,"date":"2014-02-10T19:29:29","date_gmt":"2014-02-10T19:29:29","guid":{"rendered":"http:https:\/\/www.acaptrading.com\/?page_id=225"},"modified":"2014-02-10T19:29:29","modified_gmt":"2014-02-10T19:29:29","slug":"ira-rollover","status":"publish","type":"page","link":"https:\/\/www.acaptrading.com\/individual-retirement-accounts\/ira-rollover\/","title":{"rendered":"IRA Rollover"},"content":{"rendered":"

IRA Rollover<\/h2>\n

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IRA rollovers are set up to allow for the tax-free and penalty-free distribution of funds from an employer sponsored retirement plan into an individual retirement plan.\u00a0 IRA rollovers can also occur from one individual retirement account to another when funds are distributed to the IRA owner rather than being transferred directly between accounts. Rolling over an IRA retains the tax-deferred benefits of the plan and is often used by individuals that are switching jobs, receiving IRA assets as a beneficiary following the previous IRA owner\u2019s death, or that wish to consolidate retirement accounts into one place for easier tracking.<\/p>\n

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IRA Rollover vs. Rollover IRA<\/h2>\n

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There is often confusion about the terms \u201cIRA rollover\u201d and \u201crollover IRA\u201d.\u00a0 An IRA rollover occurs when assets are transferred, or rolled over, from one individual retirement account to another individual retirement account.\u00a0 This is similar to transferring assets between accounts, except if the assets are first distributed to the IRA account owner and it is up to the owner to then place those assets into a new individual retirement account, it is considered a rollover rather than a transfer.<\/p>\n

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Rollover IRAs, on the other hand, are separate individual retirement accounts that contain assets transferred in from an employer sponsored retirement plan, such as 401(k), 403(b) or 457 plan.\u00a0 These assets must remain segregated from assets contributed by the individual account owner in case they are later rolled into another employer sponsored retirement plan.\u00a0 It also avoids any issues with annual individual contribution limits on IRAs, since there is no limit to how much money can be transferred to a rollover IRA.<\/p>\n

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Direct IRA Rollover vs. Transfer IRA Rollover<\/h2>\n

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There are two different ways to rollover an IRA.\u00a0 These include:<\/p>\n

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