In a Rollover situation, the individual receives a check for the proceeds of their retirement plan. The individual must reinvest these funds into an IRA within 60 days. Participation depends on company specific rules. Contributions are made on a pre-tax basis and contributions and investment earnings can grow tax deferred until withdrawal at retirement, at which time they are treated as ordinary income. Employees participating in a SEP IRA may invest in regular IRAs.
Participation depends on company specific rules.
Both the employee and the employer may make contributions. Contributions are made on a pre-tax basis and contributions and investment earnings can grow tax deferred until withdrawal at retirement, at which time they are treated as ordinary income. All rights reserved.