If you are contributing to a traditional IRA fund as part of your retirement plan, it is important that you review how your funds are doing and be prepared to make adjustments that may be of benefit to you.
Once you have taken stock of your financial situation, you may decide that transferring money from one institution to another would be in your best interest.
Transfers from one IRA account to another IRA account can be made tax-free if using a trustee-to-trustee process.
You will want to make certain that you understand the two ways this type of transfer can occur with no tax liability to you.
Your traditional IRA plan allows you to save for your retirement without having to pay taxes until the money is withdrawn.
It is important that you follow the guidelines for transferring your savings from one institution to another to avoid unnecessary fees.
One way of transferring your money is through an indirect transfer otherwise known as a 60-day rollover.
In this type of transfer the assets from your plan will be paid to you by way of a check.
At this point it will be up to you to reinvest your savings back into an IRA.
It is important to have made a decision about what you will do with your money once you have received you check.
If you fail to reinvest the money within the 60-day limit, IRS penalties and taxes will be charged.
Also keep in mind that only one 60 day rollover is permitted within a twelve month period per traditional IRA account.
Before reviewing your assets take the time to research the retirement plans along with the institutions that will best serve your needs.
It is simply a matter of firing up your laptop and getting all the information you need as it relates to a traditional IRA and the regulations governing transfers should that be the way you decide to go.
Investing a little bit of your time now gathering the information you need will likely be one of the best investments you will make to ensure a financially stress free retirement.
Another way of transferring your savings is through a direct transfer.
Since using the direct transfer method never results in you ever actually taking possession of your money there is no risk of penalties by mistakenly holding on to your money for longer than the 60-day limit.
Many people prefer this type of transfer, as there is no worry about penalties being levied.
Depending on your age and how close you are to retirement will determine the questions you need to ask yourself before choosing to transfer your savings from one institution to another.
The more information you have the easier it will be to make the decisions that are best for your particular situation.
If you currently have a traditional IRA retirement savings plan take the time to investigate all your possibilities before you speak to an investment professional.
It is important to play an active role in planning for your future.
By researching the many questions or concerns you have now, you will be shaping the way you will spend your retirement years.