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IRA Qualified Annuities - 401K or IRA Rollover Rule

Along with many Americans, you may have an IRA (Individual Retirement Account). A common misconception among many IRA owners is that their IRAs must remain where they are, invested as they are. Yet this is not the case. Actually, nothing could be further from the truth. That’s where the 401K or IRA rollover, Roth IRA rollover and Simple IRA rollover rule comes in.

You have complete control over your IRA account and where you want to invest these retirement funds. If you are unhappy with your IRA’s current rate of return or the service you are receiving from your agent there may never be a better time to move it. Your IRA can be transferred from where it is currently being invested to another provider without penalty or having to pay any income tax, as long as the funds remain in an IRA qualified investment—including a Roth IRA rollover, Simple IRA rollover or a Direct Transfer.

Keep in mind, annuity products can be a safe and secure alternative to other IRA choices and may pay interest rates that are higher than most bank CDs, Savings Accounts or Money Market Funds. If your IRA is currently invested in the Stock Market and you are concerned about the risk of your funds, an annuity may be a great way to guarantee your principal while still having the opportunity for growth.

With today’s Stock Market conditions, protecting your retirement funds while still maintaining a competitive return on your IRA is more important than ever.  We offer annuity products that can grow your IRA funds without the risk associated with the stock market.  In addition the rates we offer may be substantially higher then is generally obtainable from Bank CDs, Savings Accounts or Money Market Funds!

Here at DirectAnnuities.com we offer a free IRA evaluation service to all IRA owners.  A licensed Direct Annuity specialist will be glad to examine your current IRA and let you know how it compares to newer IRA options on the market. You are never obligated to take advantage of this free service. The choice to transfer always remains yours. Simply e-mail us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call 1-866-DA DOT COM to get an instant evaluation over the phone.

How Do I Do an IRA Rollover or Direct Transfer?

IRA Rollover
If you want to rollover an IRA, you must request a distribution check from the institution that currently handles your IRA. This check will be made payable to you personally. From there you have the choice to do what you wish with the funds.  Yet keep in mind, to keep your IRA qualified and avoid any income taxes or penalties you must place the money into a new IRA within 60 days.  The IRS permits you the ability to "Rollover" your IRA in this fashion only once every 12 months.

Direct Transfer
In most cases the easiest way to transfer your money from your current IRA to a new one is by performing a "Direct Transfer".  Normally it is as simple as signing internal forms from the new IRA custodian that will give them the ability to initiate the transfer directly from the old IRA account.

Therefore, the money never actually touches your hands.  This way you don't have to worry about the 60-day requirement discussed above. The IRS does not limit the amount of "Direct Transfer" that you can make from one IRA to another.

 

DirectAnnuities.com does not give tax or legal advice. The comments regarding tax treatment on this website simply reflect our understanding of current interpretations of tax laws as they apply to annuities. Since tax laws are always subject to interpretation and possible changes in the future, we recommend that you seek counsel of your attorney, accountant or other qualified tax advisor regarding annuity taxation as it applies to your particular situation.