when rolling over individual retirement account is it better to have the funds transferred or get the check ?

Question

I have heard that the institution issuing the check will withhold taxes, but if you have the funds transfered, this will not happen in the case of rolling over your IRA, or individual retirement account, you will get a 1099 for tax purposes. To explain better this is when you have an IRA account with a bank or a certain institution, and you are planning to take your account to another institution, within 60 days, and put it in another IRA account.

Answer 1

I work at a bank, you definately want to transfer the funds so you don't receive any penalties and don't become tempted to spend the money before retirement. You will need all the money you can get when you become old cuz all us young'uns are pretty much screwed out of social security.

Answer 2

yes the best way is to just roll it over electronically so there is no temptation to spend not even a penny. And to avoid any possibe penalties for not having it all back in the ira with in the 60 days. imagine how tragic, you get a check, misplaced it. Lost all your money then getting hit with a penalty and tax bill for money you don't have. Did I convince you yet. Just roll it over to your current companie's 401k or to your own private ira or roth ira.Call me when you retire and buy me a cup of coffe for all the good, free advise i just gave you. Just kidding. happy investing

Answer 3

Transfer the funds.

It is less paper work. And less of a chance of cashing the check and going to Vegas.

Transferring the funds is safe and easy to do.
I use E*trade for my Roll over IRA.

Answer 4

6 of one , 0.5 dozen of the different. It has it really is united statesand downs. Having a joint account will be a competent element for both one of you. One it facilitates you both boost believe in one yet another. it really is badly needed in to days marriages. It makes you both could be to blame and manage you money as a crew. once you married you grew to develop into as ONE. so that you prefer to administration her as you would manage your self. AS for her ; a similar element. yet having a separate account isn't a foul theory both. one element is in case you divorce a minimum of you would nevertheless have money to commence over on. yet i imagine the most important reason of all is in case you or she died then all of your sources develop right into a frozen account. you may contact it until eventually the courtroom tells you that you may. it may take as a lot as 3 months in the previous you ought to get the money on your joint account. So i'd recommend that you both have a joint account that you take advantage of to pay all the charges with which includes the groceries and medical and performance a joint price reductions for holidays or although. yet have an account of your own to do what you prefer to with so that you nevertheless have some Independence from one yet another. then you absolutely both gained't sense you may clarify why you acquire that stupid merchandise merely because. she will could purchase her clothing and also you may nevertheless purchase your fishing or searching equipment or magazines with out the guilt.

Answer 5

roll it over - the institution that has the money now is REQUIRED to take out taxes if they issue you a check.

Answer 6

get them to send the check to your institution to get the full value and they won't w/hold taxes.-- if it goes directly to you, you will get smacked with penalties (assuming you are younger than 59.5 y.o.).

Unless, of course, you need the cash desperately, then it may be worth taking the penalties.

Answer 7

get it transferred. use it for what is was intended for. retirement.

Answer 8

transferred, less hassle