An individual is permitted to move an investment from one type of retirement plan to another without incurring any tax liability. When an investor receives an IRA distribution check and reinvests it into another plan, it is considered a rollover.
To avoid paying taxes this distribution must be rolled over to another qualified retirement plan within 60 days. This may only be done once every 12 months. The rollover rules apply to money contributed to an IRA and voluntary deductible contributions made to an employer's plan.
According to IRS regulations, if a rollover is initiated by a distribution from a qualified plan, the distributing firm must withhold 20% of the distribution for tax purposes. If the rollover is from IRA to IRA, the withholding rules do not apply. Please consult your tax advisor for details.
Trading Options in IRAs
Place Trade Financial allows option trading in IRAs upon approval. You must be approved for options trading in your IRA and have signed the appropriate option trading forms including, if retired, the Options Trading For Retired Persons Letter.
Place Trade Financial allows the following option strategies in an IRA: calls and puts, covered calls, and cash covered naked puts and spreads.
There is no annual maintenance fee or charge for inactivity for IRA accounts.
For more information visit www.irs.gov.