What is a Rollover IRA?

A rollover IRA regains the tax-deferred status on a qualified retirement plan that has been transferred into your posession and out of the original tax-deferred program.

Why would you consider a Rollover IRA?

If you have withdrawn money and wish to replace it or if you will be retiring or leaving employment soon and have taken possession of funds, you may want to transfer or "roll over" your assets that were from a qualified retirement plan to our IRA account.

If you take a lump-sum distribution of your retirement assets, 20% will automatically be deducted for mandatory withholding tax. If you're under age 59 1/2, you'll also pay a 10% early withdrawal penalty and regular income tax on the amount received. Provided the rollover is made within 60 days of the distribution, it will not be currently taxable. Distributions not handled by means of a direct rollover to a Traditional IRA are subject to mandatory 20% federal tax withholding.

If you're retiring...

If you will soon be retiring and plan to choose to withdraw your money from your employer's pension or retirement plan, you may be able to roll over your benefit to an IRA. An IRA allows you to defer federal income taxes on the rollover amount. Any interest and investment earnings will also accumulate free from federal income taxes until withdrawn.

If you're leaving your current job...

If you're not retiring but will soon be leaving your current employer, you may be able to roll over the assets in your current retirement plan to an IRA when you leave. Rolling over your retirement plan assets to an IRA allows you to continue to defer federal income taxes and avoid the 10% early withdrawal penalty if under age 59 1/2. In addition, interest and investment earnings will continue to accumulate free from federal income tax until withdrawn.

If you want to change IRA providers...

You can directly transfer from another Traditional IRA (with another provider) to Cypress West's IRA and continue to enjoy federal income tax deferral on any interest and investment earnings.

Direct transfers

If you already have a Traditional IRA with another financial institution or a trustee, you may be able to make a non-taxable direct transfer to a Cypress West IRA.

Long-term tax advantages

All of the interest and/or investment earnings credited to your account accumulate tax-deferred until they are withdrawn.