A direct rollover occurs when funds from an eligible Qualified Retirement Plan are sent directly to a Traditional IRA Plan. The individual never has control of the assets. This makes a direct rollover an easy and efficient way of moving funds into your First Bank IRA.
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Direct rollovers
avoid the 20% mandatory tax withholding imposed
on Rollovers
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Direct rollovers can be from a Qualified Retirement Plan (QRP) into an IRA. Eligible qualified plans include:
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1.
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Pension Plan
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2.
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Profit
sharing plan [including 401 (k) salary reduction
plans] |
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3.
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Stock
bonus plan |
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4.
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Employee
stock ownership plan (ESOP) |
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5.
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HR-10
or Keogh plan |
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6.
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Federal
thrift savings plan [IRC Section 7701 (j)] |
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7.
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Tax-sheltered annuity plans [IRC section 403(b)] |
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8.
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State & Local government 457(b) plans |
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Distributions to be directly rolled over from
a Qualified Plan must be composed of eligible
rollover amounts. Eligible amounts include funds from:
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1.
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Employer contributions
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2.
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Non-taxed
employee contributions |
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3.
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Interest
earned from the employer and employee contributions. |
| A partial list of amounts not eligible for direct rollover include: |
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1.
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Substantially
equal periodic payments |
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2.
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Employee non-deductible contributions |
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3.
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Required
minimum distributions |
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If you are interested in rolling
over Qualified Retirement Plan funds or IRA funds into
your First Bank IRA, please see a Financial Service
Representative at your local First Bank Branch.
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