Related: 14 Annuity Tax Facts to Know
A rollover or rollover contribution is the transfer of a distribution from a qualified plan, a Section 403(b) tax-sheltered annuity, an individual retirement account (IRA) or an eligible Section 457 governmental plan.
Distributions that are rolled over according to applicable tax rules and regulations are not included in gross income until receipt at some time in the future. A rollover to a Roth IRA, though, generally is a taxable event.
These are just two aspects of rollovers advisors must consider when acting as a fiduciary for their clients.
In the gallery above are 14 important tax and financial planning questions advisors should be aware of regarding rollovers, according to ALM’s Tax Facts Online.
(Graphics: Chris Nicholls/ALM)
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