MUTUAL FUNDS

Transfer Your Retirement Account Into a Transfer IRA

Transfer an IRA

If you currently have assets in an IRA with another financial institution, you can have those assets transferred into a new or existing IRA generally without incurring any taxes or tax penalties by completing the appropriate form. Generally, a transfer must be between like retirement accounts (Roth IRA to Roth IRA or Traditional IRA to Traditional IRA). However, SEP IRA to Traditional IRA is also considered a transfer, as is SIMPLE IRA to Traditional IRA after the SIMPLE IRA has been in force for at least two years. Here's another way to look at it: the type of plan isn't changing, the type of funding is.

Adapt to new circumstances. A retirement account transfer is one way to adjust your investment mix to reflect changes in your investment goals, time frame, or performance expectations according to the risk tolerance of the customer. And there is no limit to the amount of money or number of transfers that may be requested for an IRA.

An IRA transfer lets you consolidate your savings and lets you work with one provider.

Consolidate and manage your retirement assets. The more accounts you have, the more difficult it is to keep track of your money. Consolidating your assets can make it simpler to track balances and monitor your withdrawals.

Characteristics of an IRA Transfer

  • No IRA reporting is required by either the transferring or receiving company.

  • An IRA transfer is not a distribution, so tax withholding is not necessary.

  • The number of transfers a holder may request is unlimited and may be for all or just a portion of the money.

  • An IRA transfer is not a withdrawal. That means the IRS does not impose the usual distribution rules (and taxation), because the money is not used by the holder.

  • Transfers are not subject to the one-per-year rollover rule.

  • The number of transfers a holder may request is unlimited; that is, the one-rollover-per-year rule does not apply. Generally, all or any portion of the IRA assets may be transferred. No minimum amount is required to be transferred.

Neither State Farm™ nor its agents provide tax or legal advice.

Risk Disclosures

Prior to rolling over assets from an employer-sponsored retirement plan into an IRA, it's important that customers understand their options and do a full comparison on the differences in the guarantees and protections offered by each respective type of account as well as the differences in liquidity/loans, types of investments, fees, and any potential penalties.

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