ROLLOVERS

A rollover is the moving of an IRA from its current custodian (the company holding it) to another. The following requirements must be met so that the IRA may keep its tax-deferral:

The account may be rolled over only once per year.  The funds must be placed into the new IRA within 60 days.  The opening balance of the new account must be equal to the amount of money received from the previous IRA. If it is less, penalty taxes will be applied.

Next, you will learn what may happen if you withdraw money from your IRA before you legally are allowed to.