You hear the term ‘IRA rollover’, but not many people what it really means. Here David Moore disspells common misconceptions so you’ll know exactly how an IRA rollover might fit into your investment plans.

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Today we’re talking with David Moore, co-founder of IRA Advantage, a firm that specializes in truly self-directed retirement accounts.

David, what is an IRA rollover?

David Moore: People typically think of an IRA rollover as a previous employer 401(k) plan moved into an IRA. Sometimes when people have left a job, it’s a previous employer, or at 59 1/2 years old they can then take money and move into that IRA as well. Typically that’s what we’re looking at, but it could also be a rollover from a traditional IRA to a Roth IRA too.

In an IRA rollover, what should investors be focusing on?

David Moore: What type of account they really want because with IRAs you’ve got a variety of different options there. You’ve got SEPs and simples, traditional, or Roth. And each of those things have different characteristics. A beneficiary IRA would be one that was inherited, so you really have to look at what that person has. You’ve got that dangling carrot always out there too with respect to Roths. Whether you want to take traditional funds and move it into a Roth or vice versa, you’ve got a situation where you have choices to make. I guess vice versa is not the right thing to say. You’re not going to move from Roth back into traditional very often. It’s really a question of what people are going to be investing in, what kind of growth they expect, and how old they are. A whole variety of things are going to come into it with respect to what they ultimately want.

Thank you, David. Listeners may call 503-619-0223 or can visit IRA Advantage for more information.

IRAs are a popular method of investment for retirement, and IRA rollovers are very common. But, as David notes, you need to focus on your investment goals and decide just what you want. His best advice is ‘pick up the phone and give us a call’!