IRA Rollover Guide

Learn how to move funds from one IRA to another safely and efficiently. Understand the different types of rollovers and avoid costly mistakes.

Types of IRA Rollovers

Direct Rollover

Funds are transferred directly between IRA trustees or custodians without you handling the money.

Key Benefits:

• Tax-free and straightforward process
• No risk of tax penalties
• No 60-day deadline pressure
• Recommended approach

60-Day Rollover

You receive the distribution and must deposit it into another IRA within 60 days.

Important Considerations:

• More complex with potential tax and penalty risks
• Must deposit full amount within 60 days
• Tax withholding may apply
• Use only when direct rollover isn’t possible

Steps for an IRA Rollover

Complete Transfer/Rollover Paperwork and/or Complete Rollover Call

• Upon receipt of statements and confirmation of transfer amount, we submit forms to the releasing institution.
• Follow up appointment is set 5–7 business days to ensure request was received and in good order.
• Once we send paperwork or complete rollover call, UW does not receive updates on the rollover status. Client must call the custodian directly to check the status.

Funds Clear

• Custodian deposits funds into the self-directed account; 1–2 business days to clear.

Important Considerations

Tax Withholding

If you choose a 60-day rollover, be aware that the current IRA provider may withhold a portion of the distribution for taxes.

Important:

To avoid taxes and penalties, you must deposit the full distribution amount (including the withheld amount) into the new IRA within the specified time frame.

Direct Rollover Benefits

Direct rollovers are generally recommended as they avoid potential taxes, penalties, and the need to handle the funds during the process.

Advantages:

• No tax withholding
• No 60-day deadline
• Simpler process

Best Practices

Essential Steps:

• Maintain records of all communications and forms
• Seek advice from financial professionals if needed
• Follow IRS rules and guidelines carefully

Additional Tips:

• Be aware of any associated rollover fees
• Plan ahead to avoid last-minute decisions
• Double-check all account information

Professional Guidance

When to Seek Help

If you have questions or concerns about the rollover process, consider seeking advice from financial professionals or tax advisors. Their expertise can help ensure a smooth transition and avoid costly mistakes.

Remember: By understanding these aspects of IRA rollovers, you can make informed decisions about managing your retirement funds and ensure compliance with relevant regulations.