BVS Performance Solutions FinancialGuru - IRA Transfers and Withdrawals Description: Introduction slide of desk with computer keyboard, mouse and plant. The words IRA Transfers and Withdrawals appear across the screen. The screen changes to show the narrator. Narrator: You know how important it is to save for retirement. Individual retirement accounts - or IRAs - are good ways to do just that, with your pick of tax benefits. Description: Screen changes to display a clipboard with the various conditions required to transfer funds. Narrator: You can make tax-deductible contributions to a traditional IRA, or take future tax-free withdrawals from a Roth IRA. But to enjoy those benefits, you must meet conditions when you transfer or withdraw funds from either type of IRA. You'll need to know these rules if you want to manage your retirement funds. Narrator: Let's sort out some of these key requirements. Descrition: Screen changes to show a couple working on a laptop. This is followed by several animations related to the different types of IRA transfers available. Narrator: Transfers are how you move some or all of your money from one retirement plan to another. There are basically two ways to make IRA transfers: You can have the funds transferred directly from one plan administrator - or trustee - to another. You are never in possession of the funds. Depending on the plan administrator, you'll hear these called direct transfers, trustee-to-trustee transfers and direct rollovers. Narrator: You may withdraw funds from a plan, keep or use them for up to 60 days, then redeposit all or some of the money into another plan. This may be called an indirect rollover, indirect transfer or just a rollover. Narrator: You can usually transfer funds between IRAs. Description: The screen changes to a list of the qualified plans. Narrator: You can also transfer between IRAs and other retirement plans designated "qualified plans" by the IRS. In addition to IRAs, these include employer plans, such as 401(k)s, pension, profit-sharing and stock bonus plans, deferred compensation plans of state and local governments, such as section 457 plans, and annuity and tax-sheltered annuity plans - for example, 403(b) plans. Narrator: For the most part, the IRS lets you move funds from any of these plans into any of these plans. Description: The screen changes to an animation of the way funds are transfered to Roth IRAs. Narrator: Roth IRAs are the exception. The rules often work differently for the Roth IRA because these plans are funded with after-tax contributions. Remember, most other plans are funded with pre-tax contributions. While you can transfer funds from any qualified plan into a Roth IRA, you can't transfer funds from a Roth IRA into a traditional IRA or any other qualified plan. Narrator: You can, however, transfer from one Roth to another Roth. Thanks to those pre-tax contributions, direct transfers between most non-Roth plans are tax free. Rollovers are also tax free if you complete them within 60 days of receiving the funds. After 60 days, any amount not rolled over is considered a withdrawal subject to tax and possibly an additional penalty. Description: The screen changes to the image of a calendar. Narrator: You should know the IRS imposes a one year waiting period between tax-free indirect rollovers from one traditional IRA to another. Narrator: Once again, Roth IRAs work differently. Funds may be transferred tax-free from one Roth IRA to another, but any pre-taxdollars moved from another qualified plan into a Roth IRA are taxed.