Rollover, Transfer, and Spousal IRAs
Rollover IRAs: A Way to Preserve Tax-deferred Growth
When You Leave an Employer
A Rollover IRA is simply an IRA that is funded by the retirement plan distribution
from a previous job. Rollovers into Traditional IRAs allow you to preserve the tax-advantages of your
employer-sponsored retirement plan: pre-tax contributions and tax-deferred growth. A direct rollover –
transferring your plan distribution directly into an IRA – also helps you avoid paying income taxes
and additional 10% tax penalty that the government imposes on retirement plan distributions taken in cash.
Contributions. There is no limit to the amount that you can transfer into a Rollover IRA and newly
liberalized tax rules make it possible for IRAs to be rolled back over into most employer-sponsored qualified plans.
This means you can move your existing retirement assets into a new employer’s plan, if you so choose.
Withdrawals. Rollover IRAs are governed by the same withdrawal rules as Traditional and Roth IRAs.
To order an Armada Funds No Annual Fee IRA kit, which includes IRA materials and Rollover applications, click here.
Or you can invest online, right now.
 
Transfer IRAs
If you have an Individual Retirement Account, and you’re not pleased with the performance of your investments
or the annual fees, you can transfer your savings directly from that IRA to another without incurring taxes or
early withdrawal penalties. Armada offers many investment choices for IRA investors.
Investing in an Armada No Annual Fee IRA is easy. You can order an IRA kit, download a
Roth IRA Application
and return it to us, or you can invest online, right now.
Spousal IRAs: Retirement Savings for Non-Working Spouses
A working spouse cana Traditional or Roth IRA in the name of a non-working spouse and contribute up to
the maximum contribution limit each year ($3,000 in 2002). If you file taxes jointly, the maximum combined
contribution to both a regular and spousal IRA is $6,000, and the working spouse must have sufficient earned
income to fund both IRAs. From 2002 through 2008 contribution limits will be increasing.
Deductibility of Contributions to Traditional Spousal IRAs. If the working spouse is not covered by
an employer-sponsored plan, your entire contribution to a Traditional Spousal IRA is deductible. However,
contributions may not be fully deductible if the working spouse is covered by a retirement plan at work.
If your adjusted gross income (AGI) is below $150,000, the entire contribution may be deductible. If your
AGI is between $150,000 and $160,000, only a portion of the contribution may be deductible.
Withdrawals. The type of Spousal IRA you choose, Traditional or Roth,
will determine the rules governing your withdrawals.
Investing in an Armada No Annual Fee IRA is easy. You can order an IRA kit, download a
Roth IRA Application
and return it to us, or you can invest online, right now.
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