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.
Direct rollovers
avoid the 20% mandatory tax withholding imposed
on Rollovers
Direct rollovers can be from a Qualified Retirement Plan (QRP) into an IRA. Eligible qualified plans include:
1.
Pension Plan
2.
Profit
sharing plan [including 401 (k) salary reduction
plans]
3.
Stock
bonus plan
4.
Employee
stock ownership plan (ESOP)
5.
HR-10
or Keogh plan
6.
Federal
thrift savings plan [IRC Section 7701 (j)]
7.
Tax-sheltered annuity plans [IRC section 403(b)]
8.
State & Local government 457(b) plans
Distributions to be directly rolled over from
a Qualified Plan must be composed of eligible
rollover amounts. Eligible amounts include funds from:
1.
Employer contributions
2.
Non-taxed
employee contributions
3.
Interest
earned from the employer and employee contributions.
A partial list of amounts not eligible for direct rollover include:
1.
Substantially
equal periodic payments
2.
Employee non-deductible contributions
3.
Required
minimum distributions
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.
