Individual Retirement Accounts
IRA
IRA for you, IRA for your business, and
IRA for your employees!
IRA for YOU
There are three classifications of Individual Retirement
Accounts (IRA) for individuals.
Important things you need to know about IRA Rollover
-
First, your 401k may contain both
PRE-TAX and AFTER-TAX money. The Pre-tax money should
go into a Traditional IRA and the after-tax money in
the Roth. However, you can open just one IRA account
and keep the money mixed. But, remember to keep track
of which money you already paid taxes on and always
bring it up when your accountant is doing your
books.
-
Second, when you leave your job, you should ensure
that the company does not cut you the retirement
check by calling them and express your intention to
either leave the retirement with the employer for
the time being or provide the name of the financial
institution where you set up an IRA account to
rollover into.
-
401k is less flexible than IRA. The investment
choices within a 401k are far less than those in
IRA s. If you already leave your job, you should
think about setting up an IRA.
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