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Why choose AIG Retirement for your rollover IRA?
  • More than 50 years of experience helping clients plan for retirement.
  • More than $62 billion in total assets.
  • More than two million investors.
  • Array of product options.
  • Variety of retirement income strategies.
  • Personalized objective and expert investment advisory and asset-management services.
Rollover IRA
Rollover IRA: Saving, Investing, Planning

If you’re preparing to retire, already retired or leaving your current employer, you may need to decide what to do with the money in your workplace retirement plan. Should you cash out? Keep your money where it is? For thousands of Americans, the solution is a rollover IRA (individual retirement account) from AIG Retirement.

The information contained here is general in nature and may be subject to change. Neither AIG Retirement nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state, or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.

Guidelines Back To Top

•  If your plan makes a distribution directly to you, a rollover must occur within 60 days from receipt of the check.

•  Income taxes are due at withdrawal, and a 10% federal tax penalty can apply to withdrawals made before you reach age 59½. Also, once the funds are withdrawn, they no longer grow tax-deferred. For example, $20,000 in a tax-advantaged account can be reduced by as much as 35% not including applicable state and local taxes.

•  If you already have an AIG Retirement account as part of an employer-sponsored plan, leaving your assets in that plan could be the most beneficial course of action for you. All the tax-deferral advantages present in a rollover IRA generally exist in your AIG Retirement plan.

•  For professional help with decisions, contact a Rollover Education Center Advisor by calling the AIG Retirement Rollover Education Center at 1-800-449-5155.

•  More information is available from IRS Publications 590 and 575, calling the IRS at 800-829-3676 or visiting www.irs.gov.

Qualifying Retirement Plans Back To Top
What retirement plans may be rolled over to an IRA?

• Pension plan, profit-sharing plan, 401(k) or stock bonus plan

• Traditional IRA (not Roth)

• 401(a) or 403(a)

• 403(b)

• Governmental 457(b)

• SEP IRA

• SIMPLE IRA; if more than 2-years-old, or 25% penalty applies
Disqualified Contributions Back To Top

The following  are not eligible for rollover into an IRA.

• A series of substantially equal periodic payments over your life expectancy

• Annuity payments for a period of 10 years or more

• Required minimum distributions.

• Hardship or unforeseeable emergency distributions

• Corrective distributions (necessitated by the plan’s discrimination testing failure or to adjust excess
plan contributions)

• Loans from employer-sponsored plans

• Employer security dividends

•  P.S. 58 costs (life insurance)

Opening a Rollover IRA Back To Top
If you are ready now, getting started in a rollover IRA with AIG Retirement is as easy as 1, 2, 3:

• Review the enclosed rollover IRA materials.

• Complete and sign the rollover IRA forms.

• Mail the completed forms or call the AIG Retirement Education Center at 1-800-449-5155.

• Our Retirement Education Center is ready to help you establish a rollover IRA.

FAQs

What is a rollover IRA? A rollover IRA is an individual retirement account set up to receive funds from a tax-qualified retirement plan, which retains the tax-deferred status of that plan. But the transferred funds must be made payable to the rollover IRA and not to yourself. If the funds ar emade payable to you, you must roll the funds over within 60 days and the payor may be required to withhold 20% of the distribution. You would have to make up the 20% with funds of your own to avoid paying tax on the amount not withheld and claim a refund or credit on your Form 1099. Also, if you are younger than age 59½, a 10% federal tax penalty may apply to the amount not withheld if not made up in the rollover and if no exception applies.

Why is tax deferral important?
Income tax on your account’s earnings are deferred until withdrawal. So money that otherwise would have been paid to Uncle Sam remains in your account, where growth of the accumulated funds is accelerated by compounded interest. This feature generally helps tax-deferred accounts grow faster than taxable accounts, and may offset inflation, which can reduce your future buying power.

Who can set up a rollover IRA? Persons who want to move eligible assets from a retirement plan. If a plan makes distribution directly to you, a rollover must occur within 60 days from receipt of the check.

What if you already have an AIG Retirement account? If you already have an AIG Retirement account as part of an employer-sponsored plan, leaving your assets in that plan could be the most beneficial course of action for you. All the tax deferral advantages present in a rollover IRA generally exist in your AIG Retirement plan.

Can multiple IRAs be consolidated into a single rollover IRA? Generally, yes.