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Guide to Rollover IRA Eligibility and Benefits

 

Eligibility

  • Persons receiving a distribution eligible for rollover from a retirement plan

 

Rollovers

  • Any amount may be rolled over
  • Indirect rollovers must be rolled into an IRA within 60 days of the distribution
  • Account owners can only make one indirect rollover per 12-month period
  • Direct transfers are the preferred method of rollover

 

Distribution Regulations

  • Minimum distributions begin at age 70 1/2
  • Distributions which avoid IRS withdrawal penalty
    • Death or disability
    • First time home purchase ($10,000 maximum)
    • Qualified higher education expenses
    • Age 59 1/2
    • Medical expenses (in excess of 7.5% of AGI)
    • Health insurance if unemployed
    • Received as substantially equal periodic payments over owner's life expectancy (72(t))

 

Who May Invest

  • Persons receiving a distribution from a retirement plan

 

Benefits

  • Earnings compound tax-deferred
  • Avoids taxes and penalties
  • Beneficiaries can "stretch" the required minimum distributions

 

 

 

Services and securities are offered through Security Distributors, a subsidiary of Security Benefit Corporation ("Security Benefit").

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