#Rollover #time #limit
take control of your retirement savings
We are excited to welcome you as a new Millennium Trust client. We are a leading provider of Individual Retirement Accounts and today custody over 500,000 IRAs. Your former employer where you had a company-sponsored retirement account, selected us as your successor custodian and chose to roll over your retirement account to a Millennium Trust Individual Retirement Account (IRA) on your behalf.
Your funds are currently invested in a FDIC-insured Cash Sweep Program and ready for you to take control of at your earliest convenience. These savings are in a tax-deferred account and you must simply verify your identity with Millennium Trust in order to claim your account.
As a financial institution, we are responsible for verifying your identification. This is for your protection and to ensure the money in your account is going to the correct person.
A life event may have changed your personal information from the last time you updated your account to now. The most common life events include: Moving, Marriage and Divorce. To reconcile the change, we typically require additional documentation, which can include a copy of your driver’s license, recent utility bill, marriage or divorce certificate.
What are my options?
You can choose to keep your Millennium Trust account with us or move the money elsewhere. It’s important to note that any outgoing money requests – including transfers or distributions – require that we verify your identity prior to processing.
Take control of your IRA
Move your money elsewhere
If you would like to keep your IRA with Millennium Trust, please complete the online Account Agreement. At this time you can update personal information, add funds and obtain online account access.
There are four easy ways to add funds to your Millennium Trust IRA – IRA Transfers, IRA Indirect and Direct Rollovers, and Contributions.
IRA transfers are the most common funding method for a new or existing IRA. A transfer is the movement of IRA assets directly from one trustee or IRA custodian to another. In IRAs, these types of transfers are unlimited since funds are transferred from one institution to another. The transaction is not reported to the IRS as a distribution.
IRA Indirect Rollovers (60-day Rollovers)
A rollover begins with a distribution from a retirement or qualified plan, followed by a re-contribution of all, or a portion of, the assets to another retirement or qualified plan. The rollover transaction must be completed within a 60-day period or the assets’ eligibility to be returned to a tax-advantaged account is lost. The distribution will then be taxed as ordinary income in the year it was received, and if the individual that received the distribution is under age 59½, the IRS will impose a 10% penalty on the distribution, subject to certain exceptions. It is important for retirement plan owners to take extra precaution that the transaction is completed on a timely basis, as all transactions are reported to the IRS. If the IRS does not receive confirmation of re-contribution within the 60-day period, it will assume the transaction is a distribution, and, therefore, taxable. In some cases, rollovers are not permitted, including the following:
- IRA owners may not complete more than one rollover within a 12-month period regardless of how many IRAs they own;
- Rollovers from a SIMPLE IRA plan to a Traditional IRA during the first two years of a SIMPLE IRA’s plan participation;
- After age 70½, IRA or qualified plan rollover amounts that represent a taxpayer’s required minimum distribution for that year; and,
- Rollover from a Roth IRA to a Traditional IRA or qualified plan.
Unlike an indirect rollover, a “direct” rollover always originates with assets in a qualified plan or IRA and involves movement to an IRA or another employer’s qualified plan. At no time are the assets cashable or negotiable by the taxpayer. Also, while direct rollovers are reported to the IRS as distributions, a special code on the distribution report indicates the funds were transferred in a direct rollover to an IRA or employer plan and are, therefore, not taxable. We encourage IRA owners to consult with a tax advisor regarding these limitations before initiating a transaction.
To view the IRS Rollover Chart, please click on the button below.
IRAs are available to anyone who receives taxable compensation. For IRA contribution purposes, compensation includes wages, salaries, fees, tips, bonuses, commissions, taxable alimony and separate maintenance payments. Married couples are each eligible to have an IRA, even if one spouse is not working. One spouse’s annual contribution is limited to the lesser of total taxable compensation or to the yearly amount shown in the following tables. Participants age 50 or older may make an additional “catch-up” IRA contribution in the amounts indicated in the tables below.
There are no minimum or required IRA contribution amounts, and all earnings on the amounts in a Traditional IRA are not taxed until withdrawn. In the case of Roth IRAs, withdrawals may be made on a tax-free basis provided certain conditions are met.