Funding a Self Directed IRA Account
The terms “Transfer” and “Rollover” are sometimes used interchangeably with retirement accounts. Transferring an account means the funds are transferred directly from one financial institution to another. This is the preferred method as the funds never touch you. A Rollover happens when the funds are sent to you first, and then you need to deposit them into another qualified retirement account within a certain time frame and according to IRS rules. Using the correct verbiage will allow for a smoother process.
Ways to Fund a Self Directed IRA
|Transfer from: Existing IRA||
These transfers are income tax and penalty free. The IRA Club will provide free assistance to complete the transfer.
Transfer from: 401k, 403b, TSP (From a former employer)
|These transfers are income tax and penalty free. The IRA Club will provide free assistance to complete the transfer.|
|Transfer an: Inherited IRA||The transfer is tax and penalty free. Must be a trustee-to-trustee transfer; not a rollover. The IRA Club will provide free assistance to complete the transfer.|
|Transfer from: 401k, 403b, TSP (From a former employer)||Some plans have restrictions that may not allow you to transfer funds while you are still employed. Check with your employer, ask if your current plan offers and “in service” transfer. Be persistent!|
|Transfer from: Pension Plan||Some Pension Plans do not allow fund transfers till per determined age or event. However, it never hurts to ask.|
|Annual Contribution 100% of Earned income||
Not to exceed: (2018)
Under age 50 – $5,500
Age 50 and over – $6,500