By Tina F., Senior Digital Copywriter and Guest Blogger
Thinking about Rolling Over Your IRA?
I started working at Scottrade in 2011, and, as part of my New Year’s resolutions, I decided 2012 is a good year to get a better handle on my retirement planning. I have a number of different Individual Retirement Accounts (IRAs) with a couple different institutions that I am planning to rollover into a Scottrade account.
As I began to consider my options, I was confused by the different IRA account types and couldn’t easily choose which was right for me. Luckily, I’m with Scottrade. I spoke with Lisa in our IRA department, and she helped me understand my IRA rollover options by giving me a broad overview of the basic IRA account types. Scottrade has many knowledgeable associates who can also provide you will the same IRA information Lisa provided me. All you have to do is stop by your local Scottrade branch.
Clearing up the Confusion on IRA Account Types
All IRAs fall into four account categories: Traditional, Roth, SIMPLE and SEP. A Traditional IRA allows you to make contributions to your account using pre-tax dollars, and your contributions may be tax-deductible.
With a Traditional IRA, your tax liability is not assessed until you begin making withdrawals; with a Roth IRA, contributions are made using after-tax dollars, resulting in potentially tax-free withdrawals during retirement.
In addition to these primary IRA account types, there are several targeted IRA plans, such as the Scottrade SIMPLE IRA, for small business owners and companies with 99 or fewer employees, and the SEP IRA, for the self-employed and businesses with fewer than 25 employees.
Tax Considerations are Important with an IRA Rollover
Before rolling over my existing IRA accounts, I also knew I needed to consider my current tax liability. To get a better handle on any tax implications with my IRA rollover I decided to consult my tax advisor. Speaking with a tax advisor is a wise decision when it comes to your IRA rollover, because it allows you to verify the potential tax effect.
I am so glad I took the time to talk with someone at Scottrade. Her willingness to talk me through the different types of IRA accounts was very beneficial. Now I am ready to roll over my IRAs to Scottrade.
Do you find the prospect of rolling over an IRA confusing? Learn more about investing for your retirement by visiting the Scottrade Knowledge Center.
Do you have an IRA as part of your retirement savings?
Tina F. has been with Scottrade since 2011. She writes a variety of content for Scottrade, including advertising, informational and website copy.
The information presented in this blog is for education purposes only and should not be considered an endorsement of a particular product(s), investment(s) or account(s). This information is intended only to assist you in making financial decisions, is broad in scope and does not consider your personal financial situation. It’s important to keep in mind that as with any important financial decision, seek competent tax advice during the decision-making process.
Dear John,
Thank you for inquiring about how you can rollover your 401k to Scottrade, and invest in products with a modest return and low amount of risk.
In many cases, you can move a qualifying retirement plan account into a Rollover IRA at Scottrade. Please check with your current Plan Administrator for details about initiating your rollover.
There are no fees to open and transfer an account to Scottrade. Also, since a rollover is not considered to be a taxable event, there will be no tax consequences.
Thank you for your interest in Scottrade. We hope to earn your business. Please let us know if we may be of further assistance.
Best,
Meredith M.
National Service Center Associate
I would like to roll over a 401k that I have which is managed by Fidelity. I would like some options of doing this without any penalty. I would like a modest return with low risk can you advise?
Hi Chung,
Thank you for posting on our blog. I reached out to one of our Service Center Associates, Jeff K., and here is what he had to say:
As long as your current Scottrade account is a tax deferred account like a Traditional IRA or a Rollover IRA, you would be able to transfer in the IRA from outside of Scottrade. The first step in transferring the IRA from American Funds is to fill out the Account Transfer form (located in the Forms Center of the website). The completed transfer form can be submitted to the local Scottrade branch office in person, by mail or fax. The branch will also require a recent statement from American Funds when our transfer form is submitted.
Your former employers 401k account can also be transferred to a Scottrade IRA. American Funds will need to be contacted for this transfer since there is a rollover form they will need to provide you. The rollover form provided by American Funds will probably ask for your account number and the address of your local Scottrade office. As soon as American Funds has your completed rollover paperwork, they will initiate the process from their end.
Both transfers should be completed within 7-10 business days. These transfers should also be tax and penalty free since the money would be going from one tax deferred account to another. The local Scottrade branch office can be reached by calling 1-800-619-7283 if you have further questions on this matter.
Please let us know if we may be of further assistance.
Best,
Suzanne H., Sr. Social Media Specialist
I have IRA account at American Funds and 401K plan at my previous employer.My former employer's 401K plan is managed by the American Funds too.And also I have IRA account at Scottrade.I want to move both IRA and 401k plan at American funds to Scottrade.Can I bring these two accounts to Scottrade without any penalties and tax problem?.If possible,what are the proper procedures.I retired last year and 64 years old now.