By Tina F., Senior Digital Copywriter and Guest Blogger
Thinking about Rolling Over Your IRA?
I have a number of different individual retirement accounts (IRAs) with a couple different institutions that I am planning to roll over 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 with the same IRA information Lisa provided me. All you have to do is reach out to us online, call our National Service Center or stop by your local Scottrade branch.
Here is what Lisa shared.
Clearing up the Confusion on IRA Account Types
There are four types of IRAs available through Scottrade: 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 tax-free growth and tax-free withdrawals.
The Scottrade SIMPLE IRA is for small business owners and companies with 99 or fewer employees, while the SEP IRA is for self-employed individuals and businesses with fewer than 25 employees.
Tax Considerations are Important with an IRA Rollover
Before rolling over my existing IRA accounts, Lisa also suggested that I consider consulting a tax adviser. She said speaking with a tax advisor is a wise decision because it allows you to verify the potential impact on your taxes, if any, of an IRA rollover.
I am so glad I took the time to talk with Lisa. 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.
What do you find confusing about rolling over an IRA?
Also of Interest:
- This Year’s IRA Contributions Limits
- What to Know about Making IRA Withdrawals
Tina F. has been with Scottrade since 2011. She writes a variety of content for Scottrade, including advertising, informational and website copy.
This article is for information purposes only and does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision
Scottrade does not provide tax advice. The material provided is for informational purposes only. Please consult your tax, or legal, advisor for questions concerning your personal tax or financial situation.
It looks like I can't set up my Scottrade IRA to automatically make the required minimum distributions on an annual basis (unlike other investment companies I have dealt with). The Scottrade forms for traditional and inherited IRAs only provide for monthly or quarterly distributions. Is there any way to set up automatic annual Required minimum distributions?
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.