IRA Rollovers: What's in a Name? A LOT!

Do you understand the difference between a 60-day rollover and a trustee-to-trustee transfer? If you don't, you could be slapped with a hefty tax bill and possibly penalties to boot.

(Image credit: erhui1979)

When a client retires or decides to move money from a company plan to an IRA or wants to change from one IRA to another IRA, this is often referred to as a rollover. Some of these transactions are in fact rollovers, but others are referred to as trustee-to-trustee transfers.

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T. Eric Reich, CIMA®, CFP®, CLU®, ChFC®
President and Founder, Reich Asset Management, LLC

T. Eric Reich, President of Reich Asset Management, LLC, is a Certified Financial Planner™ professional, holds his Certified Investment Management Analyst certification, and holds Chartered Life Underwriter® and Chartered Financial Consultant® designations.