Rollover IRA

A Rollover IRA is typically a traditional IRA that is used exclusively to hold rollovers from qualified plans. If you've changed jobs or recently retired, a Rollover IRA can help you take control of your retirement assets and preserve certain tax advantages and rollover capabilities you have with your 401(k) or other employer-based retirement plan.

An Ameriprise Rollover IRA is an easy-to-manage arrangement that provides you with a broad range of investment options. Professional guidance is available when you need it.¹

Ameriprise Rollover IRA benefits

• Control over investment of your retirement assets
• Provides a greater range of investment options — including stocks, bonds and mutual funds — than most employer retirement plans
• No mandatory 20% withholding on distributions from IRAs
• Flexible beneficiary planning options
• Maintains tax-deferred status of the account
• Option to meet in person with a financial advisor for professional guidance and assistance to make the rollover process easy

Avoid tax penalties and withholdings

If you are thinking about opening a Rollover IRA, consider rolling it directly from your employer plan to your IRA to avoid mandatory 20% withholding on the distribution. If you take receipt of the proceeds from your employer plan, your employer will be required to withhold 20% for income tax purposes; additionally, you may be subject to the 10% IRS penalty tax for early withdrawal if you are under age 59 1/2.

You may still roll over the entire distribution to an eligible retirement plan within 60 days to avoid treating any portion of the distribution as income, but you will need to make up for the 20% withholding with other available dollars. An Ameriprise financial advisor can walk you through the rollover process and help you avoid tax penalties and withholdings.

As with all IRAs, taxes may be due upon withdrawal from the Rollover IRA, and withdrawals before age 59 1/2 may be subject to a 10% IRS penalty tax for early withdrawal.