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What are the rollover rules for a Traditional IRA in WealthRabbit?

You can roll eligible retirement savings into your Traditional IRA through WealthRabbit, but there are specific IRS rules to follow. Understanding these helps you avoid taxes and penalties and ensures your rollover is completed correctly.

Eligible Rollovers

You can roll funds into a Traditional IRA from most pre-tax retirement accounts, including:

• Traditional IRAs

• SEP IRAs

• 401(k) plans

• 403(b) plans

• Governmental 457(b) plans

These rollovers remain tax-deferred as long as the money being moved is pre-tax.

Ineligible Rollovers

• Roth IRAs cannot be rolled into a Traditional IRA.
  Roth IRAs are funded with after-tax dollars, so IRS rules do not allow them to be combined with pre-tax Traditional IRA funds.

• Inherited IRAs have special rules. In most cases, inherited IRA assets cannot be rolled into your own Traditional IRA. They must stay in a beneficiary (inherited) IRA.

Direct vs. Indirect Rollovers

• Direct rollovers are sent straight from your old plan to your WealthRabbit IRA. These avoid mandatory withholding and are the recommended method.

• Indirect rollovers are paid to you first. You must deposit the full amount into your IRA within 60 days, and 20% withholding may apply if the funds came from an employer plan. The IRS only allows one indirect IRA-to-IRA rollover per 12 months, regardless of how many IRAs you own.