You can move your money from one IRA account to another by either a transfer or a rollover, but in both cases, the procedures are different as stipulated by the Internal Revenue Service. A transfer allows you to move money from one IRA to another IRA. And in a rollover, you get credited, and then have to make a deposit into another IRA.
#1. Roth IRA’s
If you convert to a Roth IRA you shall include it on your income tax return. The amount is reported as a taxable income.
The Internal Revenue Service places no hard rules on transfers for the simple reason that the money is untouched. There’s no limit to the number of times you may move funds from one IRA to the next. And certainly you don’t even have to report.
#3. 60-Days Rule
When you take a distribution from an IRA you are supposed to deposit the amount again into another Retirement account within a 60-days grace period. If you fail to rollover in time, or only rollover part of the funds, the missing sum is treated as a distribution.
Rollovers must be reported on your income taxes with either Form 1040 or Form 1040A. Report the total amount of the distribution on line 11a of Form 1040A or line 15a of Form 1040. Then report the amount you didn’t roll over, or “0” if you rolled over the entire sum, on line 11b of Form 1040A or line 15b of Form 1040. Finally, write rollover next to line 11b or line 15b.
#5. Rollover Limits
You cannot rollover funds from an IRA if a distribution from that IRA has been rolled over within the past 12 months.
The Internal Revenue Service is clear on the procedures. And you had better follow them else there’d be hell to pay.
So, are you ready to rollover your existing IRA into a precious metals IRA? Let Regal Assets guide you all the way.
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