Personal Rollover IRA

If you’ve recently changed jobs or retired and would like to protect the balance in your previous employer’s retirement plan, a rollover IRA is for you.

  • Eligible distributions from an employer-sponsored retirement plan can be directly funded into a rollover IRA
  • Direct rollover avoids 20% withholding requirement on distributions from employer-sponsored plans
  • May protect from bankruptcy
Deadline to Set Up and Contribute

A rollover IRA can be set up at any time to receive assets from an employer-sponsored retirement plan. An individual generally has 60 calendar days upon receiving his or her indirect rollover from the previous retirement plan provider to complete the contribution of assets to a rollover IRA. However, a direct rollover distribution from the retirement plan to Frost can be requested and completed without a time limit.

Eligibility Requirements

Once an individual has established his or her rollover IRA, the IRA owner is able to continue contributing to his or her retirement savings as long as they have earned income for the current tax year. Beginning with the tax year 2020, anyone with earned income is able to contribute to their rollover IRA.

Contribution Deadline and Limits

The maximum annual contributions to a rollover IRA is the lesser of $6,500 for tax year 2023 and $7,000 for tax year 2024 or 100% of compensation.  For those individuals who are 50 or older at the end of the tax year, an additional annual “catch-up” contribution of $1,000 may be made.

Consult a Frost wealth advisor for more details.