Avoiding a 20% Withholding Penalty on a Rollover
The best IRA companies will assist you with a seamless transfer from your old account to your new IRA. One thing to note is that, if the transfer is done with a check, you’ll get charged a 20% withholding penalty. Obviously, you’ll want to avoid this at all costs, so inform your new IRA provider that you want the funds to be transferred directly from your previous account to this one.
The best IRA companies will assist you with a seamless transfer from your old account to your new IRA. One thing to note is that, if the transfer is done with a check, you’ll get charged a 20% withholding penalty. Obviously, you’ll want to avoid this at all costs, so inform your new IRA provider that you want the funds to be transferred directly from your previous account to this one.
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