Individual Retirement Accounts - Rollover IRAs
Invest in your future today.
A Rollover IRA protects the tax-deferred status of a lump-sum distribution from an
employer-sponsored retirement, profit sharing plan or another IRA.
If you are retiring, changing jobs, have a retirement plan with a former employer,
or have an existing IRA at another financial institution, you may want to consider a
Rollover IRA. It will allow your retirement savings to grow tax-deferred even after you
reach 70 1/2 and have to start taking distributions. You can also avoid current tax and
withdrawal penalties as well as penalties for early distribution. This account is
available in Deposit and
Investment* IRAs.
Who is eligible?
Individuals receiving a retirement plan distribution or have an existing IRA. Keep
in mind that you will have 60 days from when you receive the money to roll it into an
IRA.
How much can I contribute?
There is no limit to contribute into a Rollover IRA.
What are the withdrawal requirements?
Withdrawals must begin at age 70 1/2. Penalty-free withdrawals may begin at age
59 1/2 or for certain medical, education and home purchases. If you take a lump-sum or
cash distribution, your plan administrator will be required to withold 20% for taxes.
However, if you elect to do a direct rollover, the 20% mandatory withholding will be
waived. Furthermore, no penalties apply if you elect to do this option and 100% of your
qualified distribution will continue growing tax-deferred until you make a withdrawal.
For more information about opening an IRA account at Northwest Community Credit Union,
visit your nearest branch location and talk
to an Advisor today or send an eMail
to contact us.
*Securities are offered and sold by Northwest Financial Resources, and are not
insured, may lose value, and have no credit union guarantee.