Advisors' Corner

Share:

IRA Rollovers: When, Why, and How to Do It Right

Published: April 18, 2025

IRA Rollovers: When, Why, and How to Do It Right

Ask the IRA Experts: Top 10 Questions Answered

Wednesday, April 23 | 6 PM ET

Have IRA questions? We've got answers—straight from the experts! Join us for a live Q&A-style session where you'll meet our knowledgeable IRA team and get clear, practical answers to the top 10 questions we hear from members.

Register Now

Changing jobs? Retiring? Or simply looking for more control over your retirement savings? An IRA rollover might be the right move—and understanding how it works can help you avoid costly mistakes.

Whether you're moving funds from a 401(k) or consolidating old retirement accounts, here's what you need to know to roll over your retirement savings the smart way.

What Is an IRA Rollover?

An IRA rollover allows you to move funds from one retirement account—like a 401(k), 403(b), or another IRA—into a new or existing Individual Retirement Account (IRA) without paying taxes or early withdrawal penalties, as long as the transfer follows IRS guidelines.

When Should You Consider a Rollover?

Here are a few common scenarios where a rollover makes sense:

  • You’ve changed jobs and want to take control of your old employer-sponsored retirement plan.
  • You’re retiring and want to simplify your finances by consolidating accounts.
  • You want more investment options than what your current plan offers.
  • You’re looking to reduce fees or gain better service by moving to a financial institution that meets your needs.

Types of IRA Rollovers

1. Direct Rollover
This is the most recommended method. The money moves directly from your old plan to your IRA—no taxes withheld, no risk of penalties.

2. Indirect Rollover
You receive a check and must deposit the full amount into your IRA within 60 days. If any taxes were withheld, you’ll need to make up the difference out of pocket to avoid penalties.

Avoiding Common Mistakes

  • Mind the 60-day rule. Missing the deadline could trigger taxes and penalties.
  • Only one indirect rollover per 12 months is allowed between IRAs.
  • Watch out for mandatory withholdings on indirect rollovers—usually 20% is withheld.
  • Don’t roll over Required Minimum Distributions (RMDs)—these are not eligible.

Why Rollover Into an IRA at USSFCU?

When you roll your retirement funds into an IRA with USSFCU, you get:

  • Personalized guidance from our IRA Team
  • Access to IRA Certificates and other low-risk investment options
  • No setup or maintenance fees
  • Consolidation of your retirement assets for easier management

Ready to Take the Next Step?

Rolling over your retirement account doesn’t have to be overwhelming. We’re here to help you do it right.

This article is for informational purposes only and should not be considered tax, legal, or financial advice. Individual circumstances vary, and you should consult a qualified tax advisor, financial planner, or legal professional to determine what options are best for your specific situation. While we strive to provide accurate and up-to-date information, laws and regulations may change, and we do not guarantee the completeness or accuracy of the content. USSFCU and its representatives do not provide tax or legal advice. Always review your retirement and investment plans with a professional before making any financial decisions.

View all posts

Members' Voice Testimonials

This credit union is the best, I love the customer service and you can't beat the interest rates. I'm happy to be a member of this great credit union.

- James · Locust Grove, GA

The branch manager introduced herself and was extremely helpful. She stated that if there is anything we ever need to please let her know. Very positive experience!

- Larry · Cumberland, MD

Greta was absolutely amazing - as always. She makes me and my parents feel valued and supported. We are forever grateful. [The Credit Union] has been hugely supportive over many years. And we feel known and cared for.

- Eliza · Washington, DC

Long as I have been with the credit union, I haven't had any problems. I also like the protection on my account.

- Charles · Upper Marlboro, MD

My overall experience at the credit union was exceptional. The staff was hospitable offering water, my service was timely and professional and the office was well lit and clean.

- Denise · Washington, DC

As a member for more than 40 years, i have always had great service from the USSFCU and know that they stand behind their great reputation.

- David · Silver Spring, MD

A top rate Credit Union, [I'm] privileged to be part of! Thank you for all you do for our family! USSFCU Credit Union was able to resolve our financial situation - vehicle, personal loans, customer service/recommendations, within 6 months. We belonged to another credit union for over 20 years, with results not even close to comparison. We switched ...

- Manuel · Bowie, MD

Your people and products are amazing. The recent [online banking] overhaul is phenomenal. [I've] been electronic banking since Tele action phone banking - paying bills with my push button landline decades ago. USSFCU is light years ahead of everyone else in terms of ease of use and client experience!

- Misty · Brookings, OR

I have been a member for more than 30 years. I no longer reside in the DC area but continue to bank with USSFCU because of the ease and the customer service.

- Tamra · Denver, CO

I have been a member for over 50 years, and I have always gotten good service with loans, when I had to have service at a branch, and when I needed to have money sent to me from my savings account. The personnel have always been friendly and treated me with respect.

- John · Fort Washington, MD

I especially appreciate being able to quickly speak with someone (not a robot) and that person has always been knowledgeable and helpful.

- Bernard · Richmond, VA

Excellent customer service streamlined and transparent process. The representatives are efficient, knowledgeable, and understanding of the type of loans offered by Credit Union.

- Erwin · Ellicott City, MD

The USSFCU behaves as a credit union ought to behave. The staff works with and for the members, not for a corporate board. Interest rates for a car loan, a home improvement loan, and a mortgage are low and terms are transparent.

- Ruth · Takoma Park, MD

Staff are courteous and friendly to work with. Very knowledgeable about services and products offered or available. Excellent follow-up with customers.

- Jacquelyn · Sanford, FL

I have appreciated USSFCU services for many years since I left my work on Capitol Hill. I have appreciated the occasional webinars on purchasing a home or retirement planning.

- Jamie · Washington, DC

I have been a member since 2006, and have always appreciated the customer service response to any concern or query. In addition, as I have traveled extensively, USSFCU has provided support and access.

- Kathleen · Ukiah, CA

I've had a credit union account for decades, even though I no longer work on Capitol Hill. I now have two accounts. I've been able to do all of our banking remotely, by app or by phone.

- Richard · Washington, DC

I have been a USSFCU member for almost 20 years. There is nowhere else I want my money to be. I always receive excellent service.

- Nicole · Alexandria, VA

I deeply appreciate the stellar service, the proficiency, the professionalism, and the kindness. I am truly honored and grateful to bank with a financial institution that treats customers like family.

- Angela · Alexandria, VA

Read More testimonials.