What is a rollover to a Traditional IRA?
An Individual Retirement Arrangement (IRA) is a personal retirement plan that offers you tax advantages to set aside money for your retirement. The main advantage of an IRA versus a regular savings vehicle is that the earnings on your IRA grow tax-deferred, meaning that you are not taxed on those earnings until the year in which they are distributed. Preservation of qualified retirement plan assets is enhanced by the ability to roll them over to a Traditional IRA. Once the distribution is rolled into a Traditional IRA, the balance will retain its tax-deferred status until it is distributed from the Traditional IRA. Distributions are not required to be taken from a Traditional IRA until you reach age 70½. If you take distributions from your IRA prior to the time that you attain age 59½, you may be assessed a 10 percent early distribution penalty from the IRS. You will also include the amount of the distribution in your taxable income in the year that the distribution is taken. When qual
