Transferring IRA Accounts? Don’t Trap Yourself into Paying Taxes

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Individual Retirement Accounts make one of the most excellent ways of taking full control of your retirement funds. Understandably, you do not want to engage in financial management that will be very involving. But, you always can consult about how you can have a reputable IRA specialist do the hard work for you. Moreover, moving funds cannot only be from your employer’s fund. You also can transfer your IRA money between institutions. What highlights as a critical check here is ensuring you minimize your taxes during the transfer. Depending on how you do your IRA transfer, it can also avoid attracting any penalties at all.

But, that will require you consult with a registered representative or adviser on Verizon pension plans and others like such for the best IRA strategy to undertake. You will want one that will allow you to transfer funds between IRA accounts whenever it is convenient. However, typically, such transfers can take either of the following two options:

Between trustees

Here, right before you contact your current trustee, get IRA forms from the institution to which you plan to transfer the funds. It is in these forms that you will fill in your financial details. That should include your birth, contact, and social security information. Note that these details should be the same as they appeared in your original trustee documents to avoid any hitches during the IRA funds transfer. You also will require indicating your investment selections as well as the initial contribution that you plan to make to your newly created IRA account. It is at this stage that you also identify your beneficiaries before you append your signature to give consent to your new institution to approve and process it.

Once you have completed all the documentation with your new institution, you can now contact your current trustee to initiate the direct transfer. You may opt for in-kind transfers if you plan to keep all current investments. Otherwise, you can request your current trustee to liquidate your assets if you plan to make new investments.  Typically, this process shouldn’t take you more than five days to complete.

By check

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This process follows the above one of between trustees only that your current trustee will not be making a direct funds transfer to your IRA account. Instead, they will process a check of the amount that you plan to transfer to this new IRA institution. But, to avoid attracting taxes or penalties, post this check to your newly created IRA in 60 days.

Getting an IRA account could be your best bet when planning for your retirement. But, consulting the right people has a lot to do with ensuring you utilize your retirement funds most profitably. So, whether you are on a Verizon pension plan or any other retirement savings program, it will be helpful learning how to get your funds into an IRA account. Moreover, mastering the critical checks for transferring funds right will help you to minimize taxes or avoid them altogether. But, the big question remains, are you working with a registered representative or adviser in running your IRA account?

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