|Eligibility||Must have actual income, must be younger than 70 and one half years old.||Income must be under $110, 000 if single, under $160,000 combined if married.
|Contribution||Cannot exceed $2,000||Cannot exceed $2,000|
|Deductibility||Yes; only if employer does not offer other retirement plan||No|
|Tax Advantages of Contributions||Tax deferred if income less than $41,000 or $61,000 combined if married. Also allows greater growth with larger, tax-free investment.||When money payed out of fund, no taxes due, even on interest|
|Tax Penalties||With exceptions, 10% penalty tax on money removed before age 50 and one half.||Though some exceptions, 10% excise tax if money is taken prior to age 59 ½ and not held more than five years.|
|Required Distributions||No later than April first after turning age 70 and one half.||None|
How can I find out more?
- You can start by visiting our online Learning Center to review the basics of how a 401k rollover works and what it can do for you.
- Use our Contact an Agent form to request a rollover for your 401k plan.
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