How many retirement plans and accounts do you currently have? Are you sure? It’s easy to lose track, especially if you have changed jobs or opened IRAs in tax seasons only to have forgotten about them later. Knowing the location and value of your retirement assets is an important part of retirement planning. To simplify your efforts, consider consolidating those assets with IRA rollovers.
Key Advantages — You may use the IRA rollover option to move funds from a qualified retirement plan or traditional IRA to another traditional IRA, or from one Roth IRA to another Roth IRA, with no current tax consequences. *Morgan Stanley and its Financial Advisors do not offer tax advice. Individuals should consult their personal tax advisor before making any tax-related investment decisions. Tax laws are complex and subject to change. This information is based upon current federal tax rules in effect at the time this was written.
Consolidating your accounts makes it easier to keep track of retirement balances, contributions and investment performance. You’ll receive fewer statements for easier record keeping and possibly pay less in annual account fees. With your assets pooled together, you may adjust your investment strategy more easily. And consolidation streamlines the process of making your required minimum distributions during retirement.
Put a Rollover in Motion — To track down your retirement assets, review your tax records and contact previous employers. For information about IRA rollovers, contact us. We can help you put the IRA rollover wheels in motion and assist you with other retirement planning needs.
If you’d like to learn more about retirement planning please call Brian P. Jacobs at 661-290-2022.
*Earnings on Roth IRA withdrawals may be subject to state and local income taxes; they may be subject to federal income taxes if taken before five years of participation. Qualified retirement plan and traditional IRA withdrawals generally are subject to ordinary income taxes. Withdrawals from a qualified retirement plan, traditional IRA or Roth IRA prior to age 59 1/2 may be subject to a 10 percent federal tax penalty. Certain exceptions apply. Required minimum distributions from traditional IRAs generally must begin by April 1 of the year after you reach age 70 1/2, and from qualified retirement plans by that date or by April 1 of the year after you retire, if later.
Tax laws are complex and subject to change. This information is based on current federal tax laws in effect at the time this was written. Morgan Stanley and its Financial Advisors do not provide tax or legal advice. This material was not intended nor written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their personal tax or legal advisors to understand the tax and related consequences of any actions or investments described herein.
Investments and services are offered through Morgan Stanley & Co. Incorporated, member SIPC.