Rollover IRA & Asset Transfer

As someone who already knows the value of setting aside money for retirement, you may be interested in finding out how easy it is to move your IRA to Saturna where you can take advantage of benefits such as investment flexibility and easy account access.

Asset Transfer
An asset transfer allows you to move your IRA directly to Saturna from your current custodian. Advantages of an asset transfer include no tax liabilities on the transfer and no tax reporting requirements. It is important to remember when transferring your assets directly that your information on your IRA registration at Saturna must exactly match the information given your current IRA or retirement plan custodian.

Rollover IRA
In a rollover, you take possession of your IRA assets in the form of a cash withdrawal before transferring them to another IRA. The custodian distributing your IRA assets must withhold 10% of your distribution unless you indicate otherwise. Generally, if you intend to roll over the distribution to another IRA within 60 days, you should ask the distributing custodian to waive this withholding.

Once your IRA custodian has distributed your assets, you must deposit the full value of the assets into your new IRA within 60 days. Any assets not deposited in another IRA after 60 days will be subject to ordinary income tax, and, if you are 59 1/2 or younger, a 10% penalty tax.

After completing your rollover, you must report the transaction on IRS Form 1040 of your personal income tax return. You may not deduct your rollover contribution from your taxes.

Finally, the distributing custodian will issue you the IRS Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to assist you in preparing your tax return.

Note: You may not roll over assets from a Traditional IRA or retirement plan into a Roth IRA. You must first roll over the assets into a Traditional IRA, and then make a conversion to a Roth IRA. Please see the page on converting from a Traditional to a Roth IRA for more information.