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.
Neither State Farm® nor its agents provide tax or legal advice.
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.
Not FDIC Insured