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@bee - you're right that the Fool did not make clear that the one rollover per year does not apply to trustee-to-trustee transfers of IRAs. (The one rollover per year rule is new this year only for different IRA accounts. You were always limited to one rollover per year from the same IRA account.)
Unfortunately, the page you gave had its own set of imprecise statements. I'll try to clarify both pages:
- The 20% mandatory withholding about applies only to rollovers from employer plans (e.g. 401(k)s), not to rollovers from IRAs. - If you are given a check from the old IRA custodian made payable to the new IRA custodian FBO (for benefit of) you, then this is considered a trustee-to-trustee transfer (even though you are "handling" the money) - There is a transition rule in case you did a rollover in 2014. That rollover is not considered when determining whether you're allowed to do a rollover from a different IRA this year (since you would otherwise have to wait 12 months from the time of the 2014 rollover). See IRS: One-Rollover-Per-Year-Rule.
The Fool also misstated the consequence of working and drawing SS before full retirement age (FRA). It says that working "costs" you $1 in SS benefits for every $2 you earn above a certain amount. It costs you nothing. Rather, that money is added to your later SS benefits; so in a sense you get the best of both worlds - you get to draw SS early, and you get to increase later benefits (as though you had deferred collecting SS).
See the SS booklet, p. 8: "Will you receive higher monthly benefits later if benefits are withheld because of work?"
IMHO this represents a fundamental misunderstanding of how SS works, which would make me greatly disinclined to watch the 17 minute infomercial the Fool advertises in the final paragraph about how to make money on SS.
Also, I mentioned the term "in Kind" because there are times that, if possible, you may want to transfer shares of securities "in Kind" from trustee to trustee. This is especially useful when funds that you presently own are closed to new investors. "In Kind" keep you technical invested while the transfer is taking place.
Comments
"IRA transfers" are a preferred method to move IRAs shares especially by (transferring "in kind") compared to an "IRA rollover".
Difference between IRA transfer and IRA roll over:
difference-between-rollover-and-vs-transfer/
Unfortunately, the page you gave had its own set of imprecise statements. I'll try to clarify both pages:
- The 20% mandatory withholding about applies only to rollovers from employer plans (e.g. 401(k)s), not to rollovers from IRAs.
- If you are given a check from the old IRA custodian made payable to the new IRA custodian FBO (for benefit of) you, then this is considered a trustee-to-trustee transfer (even though you are "handling" the money)
- There is a transition rule in case you did a rollover in 2014. That rollover is not considered when determining whether you're allowed to do a rollover from a different IRA this year (since you would otherwise have to wait 12 months from the time of the 2014 rollover). See IRS: One-Rollover-Per-Year-Rule.
The Fool also misstated the consequence of working and drawing SS before full retirement age (FRA). It says that working "costs" you $1 in SS benefits for every $2 you earn above a certain amount. It costs you nothing. Rather, that money is added to your later SS benefits; so in a sense you get the best of both worlds - you get to draw SS early, and you get to increase later benefits (as though you had deferred collecting SS).
See the SS booklet, p. 8: "Will you receive higher monthly benefits later if benefits are withheld because of work?"
IMHO this represents a fundamental misunderstanding of how SS works, which would make me greatly disinclined to watch the 17 minute infomercial the Fool advertises in the final paragraph about how to make money on SS.
Also, I mentioned the term "in Kind" because there are times that, if possible, you may want to transfer shares of securities "in Kind" from trustee to trustee. This is especially useful when funds that you presently own are closed to new investors. "In Kind" keep you technical invested while the transfer is taking place.
Have a great week, Derf