The Internal Revenue Service is starting to refocus its attention on taxpayers who make contribution or withdrawal errors on their IRAs. So, to hold on to more of your retirement savings and avoid IRS penalties, be sure to reach out to your tax advisor.
While we don’t offer tax advice, we suggest you keep the following tips in mind when contributing to or withdrawing from your own IRA:
1 The IRA contribution limit does not apply to rollover contributions.
2 Prior to rolling over, consider your other options. You may be able to leave money in your current plan, withdraw cash or rollover the assets to a new employer’s plan if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features, and tax treatment. Speak with a TIAA-CREF Consultant and your tax advisor regarding your situation.
3 Please be advised that effective January 1, 2015, you may only complete one 60-day rollover between any of your IRAs in any 365 day period. This new IRS rule does not impact direct trustee to trustee transfers between IRAs. For more information please visit www.irs.gov/Retirement-Plans/IRA-One-Rollover-Per-Year-Rule
The tax information contained herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. TIAA-CREF or its affiliates do not provide tax or legal advice. Taxpayers should seek advice based on their own particular circumstances from an independent tax or legal advisor.
The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.
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There are benefits to an IRA rollover.