Qualified Plans &Tax-Free Rollover Information
What Is A Qualified Plan & Procedures To Initiate A Rollover or Transfer?
A Qualified plan is considered to be an:

IRA, SEP, 401K, TSA, Pension Profit Sharing Plans.

Any of the above can be transferred or rolled over to other plans alike.

A TSA is a Tax Sheltered Annuity, available to those employed by a not-for profit organization, such as a Church or Hospital or those employed by a School.

Current law allows for a TSA to be rolled over or transferred to another TSA if employed in the same capacity. A rollover or a transfe to an IRA is acceptable if the employee has terminated his/her position from that institution.

If the employee remains employed in the same capacity with the same employer, a rollover or transfer can take place only into another company that will accept and issuea TSA.

IRA's and others mentioned above, can be transferred or rolled over to any other institution that has qualified investments.

To avoid withholding tax, when rolling over or transferring a 401K or Pension Profit Sharing plan, it is recommended that rollover or transfer proceeds be deposited "directly" to the new institution. In the event the 401k or Pension Profit Sharing proceeds are distributed to you, an automatic withholding for tax purposes of 20% will be required by the employer.
What Is The Differrence Between A Rollover & A Transfer?
A Rollover of an IRA is allowed under IRS code once a year!

A transfer is allowed any time during the year. You are allowed "unlimited" transfers, but only one (1) rollover per year.

When terminating a qualified plan if you should receive the proceeds directly (see withholding information indicated in the above section), you will have sixty days (60) to utilize the money any way you deem necessary.

HOWEVER IF YOU DO NOT ROLLOVER THE DISTRIBUTED IRA OR ANY OTHER QUALIFIED MONIES WITHIN THE SIXTY (60) DAY PERIOD, YOU WILL BE SUBJECT TO ORDINARY INCOME TAX PLUS A 10% PENALTY, IF UNDER THE AGE OF 591/2.

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