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VA Buyers srill get a $8000 rebate!
Take control of your IRAControl Your Retirement Funds and FAQTake Control of Your Retirement How to Open an Account Open an Account, or Transfer an IRA. FAQ Take Control of Your Retirement Funds. Know Your Options! If you are leaving your current job, retiring, or just wish to have greater control over your retirement funds, it's important to know your options. At Realnet Co’s Inc. we believe in giving our clients complete control over their future, and investing at least partially in real estate is the best way to achieve a bright future. Below we have compiled a list of frequently asked questions to provide information about the rollover process/transfer process. If you have any further questions, please feel free to contact our firm. Can I rollover/transfer funds from a previously established retirement plan into a self directed IRA? What are the differences between a transfer and a rollover? How does the transfer process work? Am I required to transfer my entire account? Do I have to liquidate investments in order to transfer assets to my self directed IRA? When I rollover funds from a employees sponsored or qualified retirement plan do they need to go directly to a traditional IRA? When I rollover funds from a qualified retirement plan into a Traditional IRA is this a taxable event? I would like to convert funds from qualified retirement plan to a Roth IRA. Can I do this? Do transfer funds from a previously established IRA have to be from like accounts? How do I transfer/rollover funds to my self directed IRA? How are funds transferred to my self directed IRA? What is ACATS? What is the NSCC? Are there general guidelines for the transfer process? How long do transfers/rollovers take? Is there anyway I can expedite the process? Can I check my account online to see the status of my account? Can I rollover/transfer funds from a previously established retirement plan into a self directed IRA? Yes, there are several ways funds can be transferred or rolled over into a self directed IRA. What are the differences between a transfer and a rollover? A transfer occurs when IRA assets are moved directly from one financial institution to another without the IRA owner taking possession of his/her assets. By executing a transfer, IRA owners avoid possible tax liabilities that might occur by taking possession of their funds personally. Unlike rollovers, there is no set limit to the number of transfers that can be executed in a year. A rollover occurs when an individual requests a distribution from an IRA/QRP (Qualified Retirement Plan) and then "rolls" the assets into an IRA. There are three types of rollovers: an IRA Rollover, a Qualified Retirement Plan Rollover, and a Qualified Retirement Plan Direct Rollover . An individual is limited to one rollover in a 12-month period. IRA Rollover - Occurs when an individual has taken a distribution personally from his/her IRA. The IRA owner has 60 days to rollover the distribution into another IRA. If the funds are not put into another IRA account, the individual may be subject to tax consequences and possibly a 10 % penalty. Qualified Retirement Plan Rollover - Occurs when an individual takes personal possession of his/her distributions from a qualified retirement plan. The QRP rollover is a more complex procedure than the regular transfer. Once the funds have been removed, the plan administrator will withhold 20% of the distribution for tax purposes. The client receives the 80%, then has to make up the difference to his/her IRA out of his/her own pocket. The client will have to file a form with the IRS to receive the withheld funds. For these reasons, we recommend that individuals execute a Direct Rollover (see below) whenever possible to avoid possible tax liabilities and complications. Qualified Retirement Plan Direct Rollover - The direct rollover is similar to an IRA transfer. The major difference is that there is a limit of one rollover per year. The recipient of a qualified plan distribution chooses to have his/her distribution rolled over directly to another financial institution in order to open an IRA account with those funds. By choosing the direct rollover option, an individual lessens the possibility of complications and no tax is withheld from the distribution. How does the transfer process work? To transfer retirement funds to a self directed IRA, you will first need to establish an account with a Plan Administrator. The next step in initiating the transfer process is the completion of the Transfer Form. This form can be remitted when you submit your account establishment forms, or any time thereafter. Once the transfer form has been received with an original signature, the Plan Administrator will sign and submit the form to the transferring custodian. Am I required to transfer my entire account? No. You are in complete control and may transfer whatever amount you decide. Do I have to liquidate investments in order to transfer assets to my self directed IRA? Although transfer of cash is a much faster process, clients may choose to transfer assets in kind. This allows clients to keep their current positions, the only difference being is the registration of the asset. When I rollover funds from an employees' sponsored or qualified retirement plan, do they need to go directly to a traditional IRA? Yes. Per IRS guidelines, all rollovers from a qualified plan must be rolled over into a Traditional IRA. When I rollover funds from a qualified retirement plan into a personal IRA is this a taxable event? No, this is a completely non-taxable event. I would like to convert funds from qualified retirement plan to a Roth IRA. Can I do this? Yes, after funds have been rolled over to a Traditional IRA, you may convert any portion of your Traditional IRA to a Roth IRA. When you rollover funds from a Traditional IRA to a Roth IRA this is a taxable event. (See: Roth IRA.) Do transfer funds from a previously established IRA have to be from like accounts? Yes. For instance if you wish to transfer funds from a Traditional IRA to a self directed IRA the funds must be transferred to a Traditional IRA. How do I transfer/rollover funds to my self directed IRA? The transfer/rollover process can not begin until an account is first established at Mid Ohio Securities. Once an account is established, all that is required is a completed transfer form with an original signature. After the form has been received by the Plan Administrator it is signed and delivered to the transferring custodian. How are funds transferred to the plan Administrator? Cash funds can be transferred via check or wire (see wire instructions). All other assets are transferred either ACATS or non ACATS. What is ACATS? ACATS is an acronym for Automated Customer Account Transfer Service; which is a regulated system through which the majority of brokerage account transfers are executed. Member firms of the NSCC (see NSCC below) are required to submit account transfers using this system. Non-ACATS transfers are generally made by institutions, such as: banks, insurance companies, and mutual fund companies. What is the NSCC? The NSCC (National Securities Clearing Corporation) regulates and governs the ACATS system. Members of the NSCC include the New York Stock Exchange, American Stock Exchange, and the National Association of Securities Dealers. Recommended Plan Administrators will be members of the NSCC. Are there general guidelines for the transfer process? Cash Funds Transfer From Financial Institutions - If you are transferring cash funds from a financial institution, you have two options: a check made payable to the Plan Administrator FBO your IRA, or have the funds wired for the benefit of your account. Direct Rollovers from a Qualified Plan (401k, 403b, Defined benefit, Keogh) - Direct Rollovers from Qualified Plans can be transferred ACATS or Non-ACATS. Rules and regulations vary from plan to plan. It is very important that you contact your plan administrator to be sure you are eligible to roll funds from your plan and to verify that the correct procedures are followed when removing these funds. Mutual Fund Transfers - Generally speaking, mutual fund transfers are completed as Non-ACATS. Brokerage Account Transfers - These transfers are generally sent via ACATS. Transfers coming from smaller firms that are not members of the NSCC are processed Non-ACATS. Proprietary funds and money market funds must be liquidated prior to transfer. How long do transfers/rollovers take? The portion of the account transfer process that the Plan Administrator is responsible for takes approximately 2-3 business days. Once the transfer form has been mailed, the speed of process is up to the transferring custodian. The entire process can range from a few days to upwards of 2 months. Generally speaking, transfer/rollovers take the following amount of time: Cash Transfers – No matter where funds are being transferred from cash transfers take the shortest period of time. Cash transfer take approximately 1-4 business days. Transfer from a Brokerage Account - The amount of time expected for a brokerage account transfer is approximately 10 to 15 business days from the date paperwork is completed. The actual time will vary depending on the speed in which the brokerage firm responds to our request. Transfer from a Mutual Fund - The amount of time expected for a mutual fund transfer is approximately 14 - 21 days after the paperwork is received. The actual time will vary, depending on the speed in which the mutual fund responds to the transfer request. Direct Rollovers from a Qualified Plan - The amount of time expected for a direct rollover from a Qualified Plan is approximately 7 - 60 days. The actual time will vary depending on the speed in which your qualified plan administrator responds to the transfer request. Is there anyway I can expedite the process? There are several ways you can expedite the transfer process: 1.) Let your current custodian know ahead of time about the request. 2.) If you plan on liquidating stocks or funds once they have been transferred to the new Plan Administrator, you might want to consider enacting this sale with your current custodian. Re-registration of funds and stocks generally take a longer amount of time than cash transfers or wires. 3.) Stay on top of the process and be in regular communication with the transferring institution. Remember, these are your funds. Can I check my account online to see the status of my account? Yes. Once your account has been opened, most plan Administrators, will give you your own Client Access PIN (personal identification number) you can check the status of your transfer.
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