401(k)s & IRAs For Dummies

Chapter 10

Rolling Over an IRA

IN THIS CHAPTER

Looking into rolling over

Going through the process

Taking care with Roth conversions

Being mindful of the taxes

A rollover is IRA-speak for transferring funds without penalty or tax liability. When you leave a job or take a new job, a rollover makes sure your retirement funds go where you want them.

In this chapter, I cover several rollover tricks: gathering the information you need, being aware of Roth oddities, and staying aware of tax issues. I also mention what happens if you want to take money out of your 401(k).

Rolling-Over Basics (How to Shake Is Next)

A job change may be the most common reason to roll over retirement funds into an IRA, but it is by no means the only one. The following list includes every reason I can think of that may prompt you to do a rollover:

• You have a new job with an employer that doesn’t offer a 401(k) plan.
• You have a new job and want to transfer the money to the new employer’s plan.
• You’re now 59½ and want greater flexibility than your 401(k) offers.
• Your employer terminates the retirement plan ...