The Rollover IRA account is designed for investors who want to transfer their old retirement plans to an IRA when they change jobs or retire. By consolidating your retirement plans into a Rollover IRA, you can have a more complete view of your financial picture and better plan for retirement.
Eligible individuals include those who have changed jobs or retired and have savings in former workplace plans, including:
Minimum required distributions are not eligible to be rolled over to an IRA.
If you are younger than 59½: Withdrawals are subject to a 10% penalty in addition to the regular federal and state income tax.
You may be able to avoid the penalty on early withdrawals under these circumstances:
If you are 59½ or older: All withdrawals are allowed without IRS penalty. Regular income taxes still apply.
Starting in the year you turn 70½: You must take required minimum distributions. The amount of the distribution depends on how much you have saved in the account and on your life expectancy, according to tables published by the IRS.