Rollovers & Transfers

Rollovers

An IRA rollover involves the movement of funds between two types of retirement plans that may be different, such as from a 401(k) plan to an IRA. There are many reasons for moving your retirement funds such as; relocating, consolidation of several IRA’s, safety or convenience.

Before moving your retirement funds, you should consult your tax advisor as there may be tax implications if certain rollover requirements are not met.

For more information on rollovers and rollover requirements call 1-800-657-3272 or visit your nearest branch.

Transfers

Transfers can take place as often as you like, and they are not taxable. This movement of funds between the same types of accounts is transferred directly from one financial institution to another on your behalf.

  • Transfer all or part of an existing IRA to a new account.
  • Make unlimited transfers within a 12-month period.

Direct Rollovers & Distributions from Qualified Pension Plans

If you receive a lump sum distribution from a qualified pension plan, you may be able to roll those funds over into an IRA. If you choose not to roll over all or any portion of your distribution, the portion you do not roll over may be taxable and subject to an IRS early distribution penalty of 10%. It will also be subject to mandatory federal income tax withholding of 20%.

Qualified retirement plans include pension, profit sharing, 401 (k), stock bonus, Keogh and 403 (b) plans.

Reasons that you may receive a distribution:

  • You leave your current employer, voluntarily or involuntarily (this does not apply to self-employed persons, unless they are disabled).
  • The plan is terminated.
  • You reach age 59 ½
  • You become totally and permanently disabled (this applies only if you are self-employed).
  • You receive ownership of a qualified retirement plan account from a former spouse under a qualified domestic relations order.
  • Your spouse dies and you inherit the funds in his or her qualified retirement plan.

Learn More

Call 1-800-657-3272 or visit your nearest branch to review the account best suited for your needs.

*Please consult your tax advisor for tax benefits.