IRA Connection

Retirement Rollovers

If you have changed jobs, retired, or your employer has terminated their retirement plan, we can help. 

The Burns Investment Group of Stifel Nicolaus has been helping individuals and retirees with their IRAs, and has made it simpler to work with you in helping you make the appropriate decisions when it comes to your retirement accounts. 

We will work with you to assist you with any rollover forms you need to complete and help you design an appropriate investment strategy to maintain and protect your retirement assets.  To discuss your specific situation, we invite you schedule an appointment to go over your options by calling Anthony Molina at (866) 886-7593 or by e-mail at molinaa@stifel.com. 

IRA Connection News...

05/01/2010

Are you considering a Roth IRA Conversion? 

  • Do you want to know if it would be beneficial for you to convert your retirement plan or traditional IRA into a Roth IRA?
  • Do you know the restrictions on Roth IRA conversions?
  • Call us today at (866) 886-7593 to discuss your specific situation and whether a Roth IRA conversion is right for you!

IRA Contribution Limits

Traditional and Roth IRAs

2008 and beyond - $5,000

Possible cost of living adjustments

2009 - $500 increments

Catch-up contribution for individuals age 50 and older

2009 and beyond - $1,000

What to do with your retirement plan distribution:

  • Leave the assets in the plan
  • Distribute the cash and pay taxes immediately
  • Roll your distribution directly into a tax-deferred account

Important Considerations

Take a Cash Distribution
Distributions payable to you are subject to federal and state income tax.  In fact, your employer is required to withhold 20% from your distribution check as a prepayment of estimated taxes.  Your distribution will also be subject to a 10% penalty if you are under age 59 1/2, unless you separate from service after age 55.

Indirect Rollover
Taking a cash distribution and then rolling it into your IRA or another Qualified Retirement Plan within 60 days is allowed; however, your employer is still required to withhold 20% for prepayment of federal income taxes.  In order to avoid taxation and penalties, the entire distribution must be rolled over, including the 20% withheld for income taxes.  If any amount, including the 20% withholding, is not rolled over, that amount will be subject to taxes and possible penalties. 

Direct Rollover
A direct rollover moves 100% of your retirement plan direction into your IRA or to another Qualified Retirement Plan.  You simply authorize your employer to make your check payable directly to the new custodian for the benefit of your IRA or Qualified Retirement Plan.  There is no withholding, no taxes, and no penalties with this option.  Your retirement savings will continue to grow tax-deferred until you take a distribution. 

Please consult with your tax advisor prior to taking a distribution or performing a rollover from your employer sponsored retirement plan.