Can Traditional IRA Assets Be Moved?
You can move traditional Individual Retirement Account assets from one account to another. The rules depend on whether you want to transfer the funds between traditional IRA accounts, or move traditional IRA assets to a Roth IRA.
Other People Are Reading
-
Funds Transfer Vs. Rollover
-
You might wish to transfer traditional IRA funds from your account to an IRA at a different financial institution. People often transfer IRAs if they wish to take advantage of investment opportunities not offered by their current custodian. Or, you may decide you like tax benefits offered by a Roth IRA. In this case, you would make what is known as an IRA rollover.
Considerations
-
You will face no tax or penalty for transferring a traditional IRA to another traditional IRA; in fact, you need not even report the transaction to the Internal Revenue Service. However, you will owe income taxes on amounts you roll over from a traditional IRA to a Roth IRA, and must report the rollover when you file your taxes.
-
Transfer Types
-
You can ask your traditional IRA custodian to directly transfer funds to your new custodian. In this case, you never see the money--it just shows up in in your new account. You can also make a 60-day rollover, wherein you take possession of the funds yourself and redeposit it within 60 days. In this case, your IRA custodian will withhold 20 percent of the amount you withdraw.
-
