intro music Hi, my name is Terry White, CEO of Sunwest Trust. Today is Tuesday at two o’clock. Last week, and for the last couple of weeks, we’ve been talking about freedom freedom to invest in things other than stocks, bonds and mutual funds and then last week we talked about freedom to move your retirement account.

So we’re going along with that same idea, freedom to move your account We’re going to talk about how you move your account. Everybody talks about moving their account, and typically uses the word rollover I want to roll my account over to you guys. So I want to explain the difference between a rollover and a transfer because there’s a very distinct difference and it’s a very important difference.

Number one is the transfer Now transfer is when you move your IRA account from an existing custodian to another custodian. And that’s a transfer; the money never comes to you individually. It just goes from one IRA to another IRA and that does not get reported to the IRS,.

Because you never actually had receipt of the money. So there’s no taxable event in a transfer. Now, the word that most people use is rollover, and that means something very specific. A rollover is if you go to your existing custodian and you say I’d like to have a check for $50,000 out of my account.

They’re going to write a check to you personally. Then, no matter what you do with that check if you put it in your checking account and then you turn around later and write a check to Sunwest Trust to roll the money over into Sunwest Trust into another IRA or whether you just take the check from whatever custodian you’re with,.

And you bring it to sunwest trust and you endorse the back of it, no matter what the old custodian is going to send you a 1099 and they’re going to report that as a distribution to you And then what happens is when you come to Sunwest Trust we’re going to have you sign a rollover certification which basically says you haven’t had that money more than 60 days.

And in that event then we’ll do the rollover certification the money will be rolled over into your IRA at Sunwest Trust and you’ll report it to the IRS as a rollover Line 15 and 15a on your 1040 will say how much was the distribution and how much of it was taxable I’m not really sure about the line numbers.

So you need to have your tax person look at it So basically I took fifty thousand out of my IRA and by the way I put it into an IRA at another institution And I did all that within less then 60 days Recently, up until sometime this year, there was an IRS decision that you can only do that once a year per taxpayer.

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