What are the Benefits of a Rollover/Direct Rollover/Transfer IRA?
A rollover/direct rollover/transfer IRA is designed to help you to manage your retirement funds by allowing the movement of assets from one tax-deferred retirement plan into another. For example, if you receive a distribution from your employer’s retirement plan and roll it over (rollover) or directly roll it over (direct rollover) into an IRA, you benefit in two very significant ways: You avoid immediate taxation and possible penalties; and earnings on your retirement dollars grow tax deferred until withdrawn.
