IRA Rollovers
The basic rollover is the 60-day rule, which allows for withdrawal and return without tax consequences. Initially, this rule was rather strict, but over the last several years many 60-day rollover relief rulings have been issued.
Another type of rollover is the movement of a qualifying plan such as 401(k) into an IRA. Once you leave a job or retire you need to decide what to do with your retirement plan. Since a company’s plan investment choices are usually restricted it is usually beneficial to roll over to your own IRA.
Spousal and non-spousal rollovers have rules that must be followed to achieve the end result of stretching those inherited funds.
Required Minimum Distributions
For most IRA owners, required distributions must begin by April 1st of the year following the year in which you turn 70 ½ years old. Since 2001 RMDs have been based on a revised Uniform Distributions Table. If you have multiple IRA accounts you must compute the required distribution separately for each account, but the required amount can be taken from any account.
It is important not to forget your RMD! There is a 50% penalty on the amount that you should have withdrawn but did not.