– If you’ve received a company buyout or lump-sum payment from your employer’s retirement plan, you may be wondering what to do with the funds. One smart option is to roll over the distribution into an individual retirement account (IRA) to defer taxes and potentially grow your savings over time.

In this video, we’ll guide you through the process of rolling over a company buyout into an IRA, including important rules and considerations you need to know. You’ll learn about the benefits of tax deferral, how to avoid potential penalties and taxes, and strategies for maximizing your retirement savings.

Whether you’re nearing retirement or just starting to build your nest egg, rolling over a company buyout into an IRA can be a powerful financial move. Watch this video to learn how to get started and secure your financial future….(read more)

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A company buyout can often be an exciting event, promising a significant payout for your years of hard work and dedication to your employer. However, with that payout comes the responsibility of deciding how to manage those funds. One option is to rollover the buyout into an individual retirement account (IRA) tax deferred, which allows for continued tax-free growth of your retirement savings.

When considering a rollover, it’s important to understand the tax implications. Moving the buyout funds into an IRA tax deferred allows for continued tax-free growth until you begin taking withdrawals in retirement. This means that any gains made within the account are not subject to taxes until withdrawn. However, if you choose to take a cash distribution instead of a rollover, the full amount is subject to taxes in the year received.

It’s also important to note that there are specific rules and limitations surrounding rollovers. For example, if you are under the age of 59½, you may face a 10% penalty for early withdrawals from the IRA. Additionally, there are contribution limits to IRAs, so it’s important to know what those limits are before making a rollover.

Another consideration is the type of retirement account into which you want to roll over the buyout funds. A traditional IRA offers tax-deferred growth, while a Roth IRA allows for tax-free withdrawals in retirement. Choosing between the two types of accounts will depend on your individual financial situation and retirement goals.

Overall, rolling over a company buyout into an IRA tax deferred can be a smart financial decision for those looking to continue saving for retirement. However, it’s important to consider the tax implications, contribution limits, and type of account before making a decision. As always, consulting with a financial advisor can provide valuable guidance in this process.