Home > Glossary > IRA Rollover

Meaning / Definition of

IRA Rollover

Categories: Retirement and Pension, Tax,

If you move assets from an existing individual retirement account (IRA) or an employer sponsored retirement plan to an IRA, you've completed an IRA rollover. You owe no income tax on the money you move if you deposit the full amount into the new IRA within 60 days or arrange a direct transfer from the existing account to the new account. If you're moving money from an employer's retirement plan to a rolllover IRA yourself, the plan administrator is required to withhold 20% of the total.That amount is refunded after you file your income tax return, provided you've deposited the full amount into the new account on time, including the 20% that's been withheld. Any amount you don't deposit within the 60-day period is considered an early withdrawal and you'll have to pay tax on it.You might also have to pay a penalty for early withdrawal if you're younger than 59 1/2. But if you arrange a direct transfer from your plan to the rollover ira nothing is withheld.

Featured term of the day

Definition / Meaning of

Gramm-Leach-Bliley Act

Categories: Credit and Debt, Banking,

GLB Act or GLBA. Legislation that, on one hand, allows great freedom to financial institutions in offering a full range of services and, on the other hand, imposes strict controls on how institutions share or disclose personal financial information. Signed into law in 1999 by President Clinton, GLBA repeals the key provisions of the Glass-Steagall Act of 1933 and the bank holding company Act of 1956 that barred banks from securities trading and insurance business. In its corporate aspect, the act introduces two new organization types - the financial holding company and the financial subsidiary. Under these provisions, banks, insurance companies, securities trading companies, and other types of financial institutions can together exist as one consolidated corporate entity. In its consumer aspect, the GLBA authorizes the states and eight federal agencies to monitor all collectors and holders of personal financial information, and to enforce the financial privacy rule, safeguards rule, and 'pretexting' (obtaining personal information under false pretext) rule. These rules apply also to any entity that offers any type of financial product or service, including brokers, debt collectors, credit counselors, financial advisors, small lenders, and tax-return preparers. The GLBA gives consumers some control over how their financial information is used and disclosed (beyond the purpose for it was collected) via the opt-out provision that lets them choose the option of not divulging this information.

Most popular terms

1. Use In Commerce
2. Lead Time
3. Hybrid Mortgage
4. Sell Short
5. Stowers Doctrine
6. Earnings Before Interest, Taxes, Depreciation And Amortization
7. Employer Sponsored Retirement Plan
8. Principal Register
9. Section 8 Declaration Of Excusable Nonuse
10. Savings Bonds

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital