Guided IRA Rollover Quiz
Should you move your IRA?
Let’s find out.
Your IRA is one of your most powerful retirement tools. But fees, taxes, RMDs, and market risk can quietly erode what you’ve saved. This quiz walks you through the key questions \u2014 with plain-English explanations at every step.
Your Personalized Quiz
Answer 5 quick questions
Your IRA type determines the tax treatment of any rollover or transfer. Traditional IRAs are pre-tax, Roth IRAs are after-tax, and SEP/SIMPLE IRAs have their own rules for employer contributions.
What type of IRA do you have?
Common Questions
IRA rollover questions, answered
What happens to my IRA when I retire?
You have several options: keep it invested, roll it into a new IRA, convert it to a Roth IRA, or use it to purchase an annuity for guaranteed lifetime income. Each option has different tax implications, fee structures, and income potential.
Is rolling an IRA into an annuity a good idea?
It can be if guaranteed lifetime income is your goal. Annuities convert a lump sum into a paycheck you cannot outlive. However, they may have surrender charges, annual fees, and limited liquidity. A licensed professional can evaluate suitability based on your full financial picture.
What are the tax implications of an IRA rollover?
A direct trustee-to-trustee transfer is not a taxable event. However, if you take a distribution from a Traditional IRA without rolling it over, the full amount is taxed as ordinary income. Roth IRA distributions are tax-free if the account is at least 5 years old and you are over 59½.
What is the 60-day rollover rule?
The IRS allows one indirect rollover per 12-month period. You have 60 days from receiving the distribution to deposit the full amount into another qualified account. If you miss the deadline, the entire amount is treated as a taxable distribution and may incur a 10% early withdrawal penalty if you are under 59½.
How does the SECURE Act affect inherited IRAs?
For most non-spouse beneficiaries, the SECURE Act requires the inherited IRA to be fully distributed within 10 years of the original owner's death. This can create significant tax implications if a large IRA is inherited by someone in their peak earning years.
What are RMDs and why do they matter?
Required Minimum Distributions (RMDs) are mandatory withdrawals the IRS requires from Traditional IRAs starting at age 73. The amount is calculated based on your life expectancy and account balance. If you do not take your RMD, the penalty is 25% of the amount not withdrawn. Annuities within IRAs can be structured to satisfy RMD rules while still providing guaranteed income.