Roll Overs — Video

Roll overs — moving assets from one retirement plan to another, is often misunderstood, if not mishandled.

 

Transcript:   Hi, I’m John Park PGI Self-Directed and contributor to BawldGuy talking. Today our video post is going to be on this topic of roll-overs. What are they? What do you need to pay attention to, to make sure that you’re doing everything in compliance with IRS regulations? Well first of all roll-overs, unlike transfers are funds that go from typically one plan into a totally different plan. Very specific rules have to be followed to make sure that you’re never personally receiving those roll-over funds, and it’s going directly into the plan. Also you should know that, let’s use and example, let’s say you’re moving IRA funds into a 401K plan, a self-administered 401K. When you do that roll-over, that roll-over from that IRA can only occur once every twelve months. So, if you had let’s say hypothetically, $200,000 in your IRA, but you moved $100,000 to your self-administered 401K, you could only do a roll-over once during that twelve-month period. Which means the left over $100,000 you couldn’t roll over, let’s say two or three months later. The other thing too is any time you’re moving funds into the plan, the plan has to receive the funds directly and the funds or the funding tool that’s used, is a check typically, or a wire that goes directly to the plan, or is made directly to the plan. You should never receive a check that is made out directly to you. It should always be made payable to the plan. Now roll-overs again, once every twelve months, make sure that the payee is the plan, but at the end of the day when you’re the trustee of your own self-administered 401K plan, you’ll now be able to bring in IRA’s, 401K’s, 457’s, 403B’s through the roll-over process. As trustee of that plan you can now make investment choices on behalf of the plan with those roll-over funds. So again, my name is John Park and I hope you enjoyed this video, and I look forward to seeing you on the next one. Thanks.

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About BawldGuy

I'm second generation real estate, first licensed in fall of 1969. Having been mentored by several iconic brokers, I'm also CCIM trained, having completed all 200 hours back in 1980. Have successfully executed well over 200 tax deferred exchanges, many of which have been multi-state in nature. Strong points are analysis and the creation and real world application of Purposeful Plans employing several strategies synergistically. The idea is to arrive at retirement with the most after tax income possible, backed by the largest net worth.

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