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Here’s some information about how to take a tax free IRA rollover. If you only know part of the story, you can end up damaging the tax-sheltered status of the account. The IRS can actually access taxes on all of the holdings within the account. Mistakes can be very costly, but they are easily avoidable. At the time of this writing, retirement account holders are in enough trouble, because of tumbling stock values. They don’t need to end up paying unnecessary taxes, as well. The best way to avoid them is to make a transfer rather than trying to take a free IRA rollover. Although the terms are sometimes used interchangeably, rollovers and transfers are different transactions. In order to transfer the fund, you would need to find your new custodial company ahead of time. You could start now, after you read this article, by comparing the fees that they charge and the services that they offer. You might be surprised how the costs and the investment options vary. Many people are used to having their investments confined to the stock market or mutual funds, which is the primary reason that would-be retirees have lost so much money over the last year. With a truly self-directed account, your fund can be invested in real estate and other options that are not affected by the volatility of the stock market. Once you find your new custodian, you can advise them that you want to transfer the funds from your current custodian. The transaction is not reported to the IRS and will not incur taxes. But, perhaps you want to take your time. You can take one tax free IRA rollover within a 12 month period. Not once per calendar year, as some people mistakenly believe. You simply notify your current custodian that you are ready to make a change. They are required to notify the IRS. They’ll liquidate the holdings within the account and send you a check. You have 60 days to redeposit the check into another IRS approved retirement, without incurring taxes. Exceptions are sometimes made to the 60 day rule. For example, during the aftermath of Hurricane Katrina, people were allowed to use their retirement savings for emergency purposes without penalty. The IRS gave those people an extended period of time to either return the funds to the account or include the amount used in their earnings for that year. But, generally speaking, you need to adhere to the rule, if you don’t want to pay unnecessary taxes. If you are about to take a free IRA rollover, now is the time to consider other investment options. Even before the recent stock market problems, the average account holder was earning less than 10% per year. You can earn a lot more in the real estate market. You just need a little time and a little education. There are even groups that will do all of the work for you. Whether you decide to take your one free IRA rollover this year or transfer the fund, learning about opportunities in the housing market is well worth your time. Gordon Hall is an active participant of a national network of professional writers, who advocate socially conscious real estate investing, through the use of retirement vehicles such as IRAs, 401Ks and other retirement assets. For more information, or to get involved, please visit the following http://www.double-your-ira.com
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