Transfers and Rollovers


We can establish an IRA for contributions, and/or to receive transfers of investments or funds. We can initiate and receive an IRA transfer or work with your employer's custodian to initiate and receive an employer savings plan, like a 401(k) rollover.

Traditional IRAs


An Individual Retirement Arrangement ( Traditional or Regular IRA) is a way to save for retirement with tax advantages. Eligibility for the tax advantages associated with contributions depends on household income limits and eligibility for other tax advantaged plans, like a 401(k). Generally the contribution reduces ordinary taxable income by the amount of the contribution. Growth will depend on the investments held in the account, but they will grow tax deferred, with withdrawals limited until the account holder attains the age of 59 1/2. Penalties are assessed for early withdrawals before age 59 1/2, although there are a few exceptions. Withdrawals by the account holder are taxed at ordinary income tax rates in the year of the withdrawal.

For taxpayers with high incomes and limited IRA options, there is a strategy that involves contributing to a non-deductible IRA and then initiating a tax-free Roth conversion, so that the funds in the Roth IRA grow tax free. This conversion can be tax-free for taxpayers without other pre-tax Traditional IRAs, otherwise a portion of the conversion may be taxable.

Roth IRAs


A Roth IRA is another way to save for retirement with tax advantages, but it is subject to most of the same rules that apply to a traditional IRA. The main difference is that contributions are after tax and not deductible, but qualified withdrawals are not taxable. Growth will depend on the investments held in the account, but they grow tax deferred and, usually, can be withdrawn tax-free. Unlike a traditional IRA, contributions with earned income can continue past age 70 1/2 and withdrawals are never required for the account owner. Eligibility for the tax advantages associated with contributions depends on household income limits and eligibility for other tax advantaged plans, like a 401(k).

 

 

Your Money, Your Plan!

When you take control of your finances, rather than letting them control you, you can live life more fully. Regardless of your age or life stage, you can make financial decisions that move you toward your goals.