Your IRA is a great way to save for retirement. But if your current IRA provider’s fees are too high, or its investment options are too limited, you might want to consider switching to another provider.
You could make an indirect rollover, in which your IRA would be liquidated and the money sent to you. But if you don’t deposit the money into another eligible IRA within 60 days, the transfer may be subject to taxes and penalties.
As an alternative, you could simply ask your old IRA provider to move the money directly to your new provider.
If you’re moving money from a 401(k) to an IRA, you can make a direct rollover, in which your 401(k) administrator essentially writes a check to your new IRA custodian, with no taxes withheld. However, if the payment is sent to you, you’ll have to put it in the IRA within 60 days to avoid possible tax liabilities and potential penalties.
When it’s time to move money from your IRA or 401(k), you should consult with your tax and financial professionals. These funds will contribute to your retirement income, so manage them wisely.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.