What does a rollover really mean for you and your savings?

What is a rollover?

Rollover is transferring a pre-retirement payment from one retirement savings account to another without paying the taxes on the money at that time. Rollover can be a great way to move your assets without sacrificing them. But if it’s not done the right way, taking money out of a retirement savings account early can get expensive.

The Benefit of a Rollover

Withdrawing money from a retirement account usually means taxes and a penalty for non- qualified early withdrawal. A rollover allows you to take money out of a retirement savings account and move it to a different one, while still having tax-deferment on those funds.Thus allow the maximum amount of money to grow.1

How To Do It

There are three ways to complete a rollover:

  1. If the distribution is made out to you, you can deposit all of it or a portion into an IRA or other retirement account within 60 days. This method requires the government to hold on to a percentage of the amount for tax. You will have to use other funds to rollover the full amount.2
  2. A direct rollover can be done when you ask the account administrator to deposit the money directly over into another retirement plan or to an IRA.
  3. If you are receiving a distribution from an IRA, you can ask the institution to make the transfer from that IRA into a new one or another type of retirement account.

Utilizing rollover can be an effective way to switch up your retirement plan without sacrificing the money you have saved, as long as it is done correctly. Consult with a financial architect at Miramontes Capital beforehand to ensure the rollover process is conducted without error.



“Rollovers of Retirement Plan and IRA Distributions.” Para 2. http://bit.ly/2c7qx8K. Internal Revenue Service.Web. n.d.
2 “Rollovers of Retirement Plan and IRA Distributions.” Para 6. http://bit.ly/2c7qx8K. Internal Revenue Service.Web. n.d.


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Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.