Understanding Rollovers

Moving your money from an employer-sponsored retirement plan (401(k), 403(b) or similar) to another plan is called a rollover.

Potential Advantages

Rolling over your employer sponsored retirement funds after you leave, or selecting a new trustee for your existing IRA, may offer advantages, such as:

  • Full control and the liberty to make decisions regarding your funds

  • A wider range of investments

  • Zero penalties

  • Lower fees

  • Asset protection

  • Easier access to your money for withdrawal

Direct Rollover

A direct rollover allows you to transfer funds from one trustee to another, such as a 401(k) directly to an IRA held at a bank or brokerage. With this type of rollover, all the funds are transferred and none are withheld for taxes.

Indirect Rollover

With an indirect rollover, you have the option to cash out your old retirement plan and reinvest your funds in a new plan. This transfer must be done within 60 days of cashing out. In this instance, the funds are given directly to you from your employer. You are responsible for depositing those funds into an approved retirement plan within 60 calendar days of the distribution, otherwise it will be treated as an early distribution and be subject to additional taxes and penalties.

In a 12-month period, and regardless of the number of IRAs owned by an individual, only one rollover from one IRA to another is permissible, unless the transfer involves moving funds from one trustee to another. Trustee to trustee transfers are unlimited.

You can rollover all or part of any distribution from your IRA except for a required minimum distribution or excess contributions and related earnings.

Ready to Open an Account?

To open a separately managed account, please call us at 877-417-6161.

There are three ways you can open an account and invest in Iman Fund.

1. Directly with us by mail, see the applications below.

2. Online with one of our broker partners.

3. Through your financial advisor.