The amount you receive from a qualified pension / profit sharing plan or personal IRA account at another institution, can be deposited into a Rollover IRA within 60 days without incurring a tax penalty. The tax you would ordinarily pay is deferred until you withdraw money from the IRA Rollover account at a later date, no earlier than age 59 1/2.
If you rollover only a portion of the amount that you receive, the remainder will be taxed, and is subject to the 10% IRS penalty.
It is advantageous for you to contribute the maximum amount to your traditional and/or Roth IRA. The earnings continue to accumulate, tax-deferred, until distributed with your traditional IRA and, possibly tax free, with your Roth IRA.
|20 Year Investment Period|
|Gain of $9,000 with IRA|
QNB strives to be knowledgeable of changing tax laws. However, we are not tax advisors. We, therefore, encourage you to consult your tax advisor to discuss specific tax benefits for your situation.
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