Consolidate Your IRAs

Transfers:

An IRA transfer refers to the movement of funds between the same types of accounts with no distribution to you.

Example:  Move money from a Traditional IRA at another institution, to a Traditional IRA at Great River Federal Credit Union.

Benefits of a Transfer

Transfers are conveniently completed by the distributing and receiving financial institutions, and the transaction is neither taxable nor reportable to the IRS.

Rollovers:

Consider a rollover if you leave a job in which you participated in an Employer Pension or Profit-Sharing Program, like a 401(k), and you want to move your funds to a Great River FCU IRA.

Speak to your company’s Plan Administrator to complete the necessary forms.   Once completed, the Administrator will distribute the assets of your IRA directly to you.  Those funds should be deposited into the new IRA within 60 days.  This transaction is reportable as a distribution; and will be reported as a rollover

Benefits of a Rollover

By rolling over your retirement savings from an employer-sponsored retirement plan directly to an IRA, you’ll avoid mandatory 20% income tax withholding and any IRS early distribution penalty. Investment surrender fees may still apply.  Rollovers to IRAs also allow you to retain the tax-sheltered status of your retirement savings while maintaining complete control over your investment selection and account access.