IRA and 401K Roll Over

Many people can invest into real estate using hard earned IRA and 401K money! You can enjoy the tax efficient benefits while diversifying your portfolio into cash-flowing real estate.

There are some steps that are required to make this happen. Please read the following carefully. While not complicated, it is important to know how it works.

A rollover is a process of transferring funds from one qualified retirement plan, such as a 401k or 403B, to another retirement account. The most common reason for a rollover is to move retirement funds from a previous employer’s plan to a new retirement account. There are two types of rollovers: Direct Rollovers and Indirect Rollovers (also known as 60-Day Rollovers).

Direct Rollover

A direct rollover happens when the custodian of the retirement account from which you want to move funds sends a rollover check or wire directly to the custodian of the new retirement account. With this type of rollover, there are no taxes withheld from your rollover payment.

Indirect Rollover (60-Day Rollover)

An indirect rollover is when you receive a distribution from a retirement account and deposit it into another retirement account within 60 days. Once you receive the rollover check from your transferring custodian, you have 60 days to deposit these funds into another retirement account. Failing to complete this transfer within 60 days will classify the rollover amount as a distribution by the IRS, and you’ll have to pay taxes on the distribution.

To learn more about these rollovers, visit the IRS website.

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