IRA Rollover Opportunities

Tax laws keep changing, and for anyone who has been in the business for a while you understand that change means opportunity. Opportunity to educate and an opportunity to provide service. Right now there is a great opportunity for IRA rollovers. EGTRRA (and now PPA 2006) allow IRA rollovers into qualified plans. This is an opportunity to roll over ANY IRA funds into a qualified plan. This could be a huge opportunity for your clients. Why?

Rolling IRA Funds Into a Qualified Plan Means:

  1. The funds are available for loans– For the first time ever, this also includes sole-proprietors, partners and Sub-Chapter S shareholders
  2. Funds withdrawn from a qualified plan are not subject to a 10% penalty if withdrawn after age 55 if there is a separation from employment – There is not the need to wait until age 59 1/2 to avoid the penalty like there is in an IRA or tax sheltered annuity.
  3. Qualified funds are protected from bankruptcy – this may be reason enough for a rollover in a state where IRA funds are not protected from creditors.
  4. In a qualified plan, there is often more investment opportunities than exist in the IRA – More options mean more chances to give your client what he wants.

About Jeffrey Berson

40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".
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