Foreward

Rolling over or transferring your tax qualified pension plan may be a good option for those looking to delay the payment of income taxes.

Rollovers and/or transfers are typically triggered by a separation of service from an employer.

However, since 1993 rollovers can be subject to a 20% mandatory withholding tax if you do not rollover or transfer your assets directly from one institution to another or within a 60 day window, so one should employ great caution.

But first, let's make the proper distinction between Rollover, Transfers and Direct Rollovers.

Rollover

If the investor receives a distribution from a tax qualified plan such as a 403B, IRA or SEP, the investor may rollover to another qualified plan (providing the new plan accepts qualified plan monies).

For example, a 403(b) can be rolled to another 403(b) or to an IRA, while a SEP can be rolled to another SEP or IRA.

Transfer

The Transfer, like the Rollover, does not trigger adverse tax consequences when done correctly. A 'transfer" is characterized as an institution to institution transaction with the classification of assets going to another identical classification.  For example, these tax deferred transfers would be for and IRA to IRA, SEP to SEP and 403(b) to 403(b) transfers.

Direct Rollover

This transaction is typically made from a 403B or 401K or other tax-qualified company pension plan directly to a Self-Directed IRA plan, but not vise-versa.


Action To Take

Click HERE to obtain Rollover / Transfer information

For Faster Service Call 1-800-480-7526


 

 

 

 

 


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Copyright 1998 Fielder Financial Management, LTD.
All Rights Reserved.

Securities and investment advisory services offered through Girard Securities, Inc. member FINRA, SIPC.
Fielder Financial Management, Ltd. not affiliated with Girard Securities, Inc.  Mark Fielder, OSJ, Registered Principal. CA. Insurance Lic. # 0690576.