What is a IRA rollover and how does it work?
First, let’s talk about terminology. An IRA Rollover and Rollover IRA are often used as interchangeable terms. For the purpose of this discussion, we will use IRA Rollover. One of the most common purposes for an IRA Rollover is to maintain the favorable tax status of the dollars you have accumulated in your former employer’s 401K. Rolling over your dollars from your 401K to an IRA Rollover is a simple process, but it can have serious tax implications if you are not careful. The IRS allows you to keep benefiting from the deferred tax status of your 401K account after your employment has terminated. Generally speaking, the most effective way of doing this is to rollover your 401K to an IRA Rollover. You will first need to establish an IRA Rollover account at a qualified financial institution. Next, you will need to obtain and complete the necessary paperwork from your prior employer that will instruct them to rollover your 401K to an IRA Rollover. We recommend that you instruct your form
