Self-Directed IRA Rollover

If you are retiring, changing jobs and/or dropping out of the workforce for whatever reason, it could mean you need to roll over your IRA. Following are some frequently asked questions about rolling over your IRA that will help you make the best decision for your future.

IRA Rollover: Frequently Asked Questions

1. Can I transfer funds from a previously established retirement account into a Self-Directed IRA with your company?
Yes, you can. There are several ways to go about it. For more information, read How to Transfer Retirement Funds into a Self-Directed IRA and/or How to Roll Over Retirement Funds into a Self-Directed IRA.

2. Do I have to transfer my entire account? 
No, you don’t. You can transfer as much or as little as you want.

3. Can I roll over funds from an existing retirement account if I am still employed by a company and remain a member of that particular plan?
es, but with a caveat. You first need to consult with your company’s Human Resources and/or Benefits Director to see what their guidelines are on this within the plan that you’re enrolled in.

Yes, as far as Equity Trust is concerned this is perfectly fine. But you will need to check with your plan administrator or HR department to see if this is permissible within the structure of your employer’s retirement plan.

4. Do funds transferred from previous or existing IRAs have to be from like accounts?
Yes, they do. As an example, if you want to transfer funds from a Traditional IRA or 401k to a Self-directed IRA, the transfer must be to a Self Directed IRA or expect to pay taxes at the regular tax rate because your transfer would be taxed as an IRA distribution.  Note: Roth 401ks cannot be transferred into a Roth IRA.

5. How long does it take to transfer and/or rollover funds?
The process of transferring funds from your former custodian can range from a few days to a couple of months.  Your former custodian has up to 60 days to complete the transfer and in part is out of the Self Directed IRA Services control. The part we do handle usually only takes 2-3 business days.

Following are some general guidelines about how long it takes, depending on where the funds are coming from. They are listed from longest to shortest time.

Rollovers from Other Retirement Plans: This is perhaps the slowest of all transfer requests. It can take anywhere from a week to two months to complete this type of transfer. The speed at which this transfer takes place depends on how quickly your current Benefits/Plan Administrator responds to the request (read corporate red tape to cut through).

Transfers from Existing Brokerage Accounts: This type of transfer takes about two weeks (10-15 days). How long it takes dependson the response time of the brokerage firm. Because many brokerage firms are accustomed to dealing with these types of requests, notice how much quicker the process is from a corporate/employee retirement account.

Mutual Fund Account Transfers: Once all proper paperwork is received, the transfer usually takes two to three weeks (14-21 days). The time depends on the rate at which the mutual fund responds to the transfer request.

Cash Transfers: Cash is king! It doesn’t matter from where it’s being transferred, cash transfers take the least amount of time. They can be done in under a week (usually 1-4 days).