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RETIREMENT SERVICES FAQS

Is there a limit to how many IRA’s I can have?

There is no limit on the number of IRAs an individual can have, but the annual aggregate regular contribution amount for all of his/her traditional IRAs and Roth IRA’s cannot exceed the lesser of the maximum allowable contribution or 100 percent of compensation.

How long do I have to roll over a distribution from a retirement plan to an IRA account?

A rollover must be completed by the 60th day following the day on which you receive the distribution.

What is a "catch-up” contribution?

A catch up contribution is available to an individual who is at least age 50 by the end of the year. These contributions allow older individuals to compensate their IRAs for contribution opportunities they did not or were not able to take advantage of in the past.

What is the IRA contribution deadline for any tax year?

Under IRC Section 219(f)(3), a regular traditional IRA or Roth IRA contribution for any tax year must be made by the due date (not including extensions) of an IRA owner’s federal income tax return for that year. For calendar-year taxpayers, this is April 15 of the following year. If April 15 falls on a weekday or a holiday, IRC Section 7503 moves the deadline to the next business day.

Must an IRA owner contribute each year?

No. There is no obligation for an IRA owner to contribute each year.

What is the difference between an IRA to IRA Transfer and an IRA Direct Rollover?

An IRA to IRA Transfer is when IRA assets are moved directly from one financial organization to the same type of IRA at another financial organization without the IRA owner having control of the assets.

An IRA direct rollover is like an IRA-to-IRA Transfer, except that it is reported to the IRS. An eligible recipient directs a plan administrator/trustee to send an eligible rollover distribution directly to (or registered in the name of) an IRA custodian/trustee or other eligible plan. A direct rollover of qualified employer plan assets to a traditional IRA allows the recipient to avoid the mandatory 20 percent federal income tax withholding and avoid both income and penalty taxes.

Can I change a Traditional IRA to a Roth IRA or a Roth IRA to a Traditional IRA?

Yes, you may recharacterize a regular traditional IRA contribution as a regular Roth IRA contribution or vice versa. Attributable earnings must accompany the recharacterized amount and an IRA owner must complete the recharacterization by a federal income tax return due date, plus extensions.

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