Like millions of Americans around the globe, you may not know whether or not you own an IRA. One of the major misinterpretations among IRA owners is that they think that they must keep their IRA exactly where it is when, in fact, the truth is the exact opposite, as I highly recommend that one should invest in a self-directed IRA.
Going into this topic a little deeper, each owner of an IRA account has absolute control over where the money is invested, and this control becomes essential if you are unsatisfied with your current interest of return that you are receiving. If desired, you can send your IRA funds to another IRA investment company without having to worry about any form of penalty or charges against your income tax statement. This is all capable by Direct Transfer or IRA Rollover.
Moving ahead, 401k to annuity products are considered to be a much safer and secure outlet than most savings accounts or money market funds provided by banks. Also, I want to say that if your IRA funds are currently in a mutual fund and you are unsure about the risk to your principal, and then filing an annuity is a great way to guarantee you an opportunity for some serious growth.
In these rough conditions we are living in, many people are considering solo 401k plans after complying with the solo 401k rules. This in return protects your savings and offers a rather decent return on your IRA, which is more important now than ever before. So in conclusion one may be asking him or herself, how exactly does a Direct Transfer or IRA Rollover operate.
It is quite simple if you wish to move your IRA funds; you will need to first ask for a check from your current provider that handles your IRA account, and then that check in return will be made payable to you personally. You are then completely free to do whatever your heart shall desire with that money. As long as you remember to take that money from your old IRA account and place into your new IRA account within sixty days, your old IRA account won’t remain open, and you won’t have to pay any federal income tax or interest on the money.