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Table of Contents
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When shall I use a rollover to my IRA?
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That depends on your particular needs and circumstances. Here are some reasons you might want to roll over distributions to your IRA:
You want to, or have to, take a distribution from your employerís plan and want these funds to continue to grow tax-free in your own IRA. As a self-employed, you are terminating your Keogh plan or retiring from business and want to continue the tax shelter for these distributions. - You are the beneficiary of a deceased person's retirement plan and want to continue the tax shelter for these distributions in your own IRA.
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Is there a downside to an IRA rollover?
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Here are some of the disadvantages of an IRA rollover:
Rollovers from company or Keogh plans may take away your spouseís right to share in plan assets. IRAs canít claim the limited tax relief allowed on lump-sum distributions.
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Tip: To avoid tax hassles, rollovers should be done between the trustees of the plans involved, and not as a do-it-yourself.
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Financial Planning