September 15, 2021

Rolling over your tax-free plan

Do you have a tax-free plan that you are thinking about rolling over? Or are you moving to another company and thinking of moving your tax-free retirement plan? This is a great idea. 

The questions that we just asked are just some of the many reasons that people roll over their tax-free plans. But the truth is they are never really sure how to go about the process. This is understandable considering that this is such a big step. And a big step means a process that is just as big. 

So, we are here to help you with the steps you need to take to have a successful tax-free plan rollover. Go through the steps and start planning what you need to do. If you have any specific questions about your tax-free plan, give the Texas Insurance Agency team a call. One of our insurance agents will be happy to

Rolling over your tax-free plan

The insurance agents at Texas Insurance Agency can assist you in your tax-free plan rollover.

assist you.

Steps to Rolling Over your Tax-Free Plan

Rolling over any plan can be a hassle if you don’t know what to do and don’t have the right help. But if you do have an agent assisting you with the process everything becomes a lot easier and simpler than you would think.

Rolling over a tax-free plan simply means taking all the funds that you have from your current tax-free plan and moving it to another tax-free plan. And like we said this can be done for a variety of reasons. 

There are a total of three different ways that you can complete your tax-free rollover. The first being a direct rollover. Then we have the trustee-to-trustee transfer. Lastly, there is the 60-day-transfer. Each of these come with their own specific process of rolling over. Direct rollover and trustee-to-trustee transfer both have very similar steps, so we’ll start with that first. 

One of the first steps to completing these rollover processes is finding another tax-free plan with another company. The reason for that is because the funds in your former account will be transferred directly into this account. In addition to that, your new agent can assist you with the rollover process and you don’t have to stress. 

These are the simplest and most recommended way of rolling over your tax-free plan funds.  

With the 60-day transfer, the funds are initially sent to you in form of a check or a transfer. But it is called the 60-day transfer for a reason. Once the funds are sent to you, you have a total of 60 days to have that total amount put into another tax-free account. If not, there will be a fine paid on the total amount. 

So to avoid this fine, many make sure that within those 60-days they have signed up for another tax-free plan. 

Start Your Rollover Process Today

Now that you have the steps needed to complete your tax-free rollover, take the time to find your new tax-free plan. Texas Insurance Agency can assist you in signing up for this new plan. Give us a call if you have any further questions about your tax-free plan rollover.  

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