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If you have changed jobs or recently retired and still have assets in your former employers retirement plan, consider rolling those assets into an AARP Funds Rollover IRA.
An AARP Funds Rollover IRA is a smart choice. You have the opportunity to invest in any of the AARP Funds so that any earnings growth will be tax deferred, and the low fees will keep more of your money working for you.
In addition, our dedicated Financial Advisors will assist you every step of the way, from paperwork to fund selection. So if you have questions, call our dedicated Financial Advisors for assistance toll free at 1-866-218-6142.
Just call AARP Financial at 1-866-218-6142 to speak with one of our Financial Advisors. And find out how to get the most out of your hard-earned IRA investments.
Download the 10 Reasons to Consolidate Your Retirement Investments (PDF)
Our Financial Advisors's can help guide you through the process
| Is there a Deadline for Opening a Rollover IRA? | In general there is no deadline for opening a Rollover IRA. You can Rollover the assets you have in your former employer's retirement plan after you have left your employer. |
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| What is a Direct Rollover? | With a direct rollover the assets are sent directly to the AARP Funds, or at the very least, a check is issued to you, made payable to the AARP Funds, which you can then invest in your AARP Funds IRA account. |
| What is a 60-Day Rollover? | In some instances, if you take a distribution from your former employer's retirement plan, they will issue a check made payable to you. If this is the case, they will most likely withhold 20% in Federal Taxes before issuing the check. If you wish to invest these proceeds into an IRA, you have 60 days from receipt to place the assets into an AARP Funds IRA. Please note that if you do not make up the 20% that was withheld in Federal taxes, that amount will be viewed as a premature distribution and if you are under age 59 ½, you will be subject to a 10% early withdrawal penalty. It is strongly suggested that you utilize the direct rollover option to move assets from a former employer's retirement plan to an AARP Funds IRA if possible. As the tax implications can be complicated, we recommend you contact your tax professional for assistance. Call a Financial Advisor toll free at 1-866-218-6142 to explain the details. |
| How can I move assets from an existing IRA Account? | Direct Transfer: This is usually the cleanest way to move assets as the movement is neither taxable nor reportable. In this instance you would simply send a completed transfer form to AARP Funds and we would forward to the current custodian of your IRA account to initiate a transfer of assets. The check would come directly to AARP Funds and you would never take receipt. Please note that within the first 2 years of establishment, SIMPLE IRA assets can only be transferred to a SIMPLE IRA.
60 day Rollover: Another option is to process a distribution from your current IRA account, asking that taxes not be withheld. Once you receive the distribution, you have 60 days to move "rollover" the assets into an AARP Funds IRA account. This transaction is reportable, but not taxable. |
| Who is Eligible? | Anyone who has assets in the retirement plan of a former employer and wants to preserve the tax-deferred status of their assets distributed from an employer-sponsored retirement plan. |
| How Do I Establish a Rollover IRA? | A Rollover IRA is usually funded with an eligible distribution from an employer sponsored retirement plan such as a 401(k), 403(b), 457(b), or an existing IRA account etc. |
| Can I Combine It with an Existing IRA? | You may combine your rollover amount with a Traditional IRA or create a separate rollover IRA account. However, many individuals choose to keep Rollover IRA separate form other IRAs for recordkeeping purposes. |
| Can I Make Additional Contributions? | You may make additional cash contributions to your Rollover IRA based on the contribution rules of a Traditional IRA and/or or combine it with assets in an existing Traditional IRA. However, many individuals choose to keep Rollover IRA separate form other IRAs for recordkeeping purposes |
| Can I Make Withdrawals? | You may make penalty free withdrawals after age 59½. Withdrawals prior to age 59½ are subject to a 10% penalty. |
| Are there Exceptions to the Early Withdrawal Penalties? | There are several exceptions to the early withdrawal penalties, including:
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| What are the Investment Options? | You have the option of investing in any of the 5 AARP Funds. Each fund has low fees which can make a big difference in you returns over time. |
| What is the Cost? | The cost is $10/year per fund in your IRA account. |
| Is There Assistance Available? | If you have any questions about establishing your Rollover IRA, or which fund to invest in, help is just a phone call away. Call our dedicated Financial Advisors for assistance toll free at 1-866-218-6142. |
The Financial Advisors are registered representatives of ALPS Distributors, Inc., a registered broker-dealer, and as investment adviser representatives of AARP Financial Inc., an investment adviser. AARP Financial Inc. offers investment advisory services and is not affiliated with ALPS Distributors, Inc.
