A Rollover IRA helps you avoid taxes and penalties when you move money from one tax-deferred account — like an employee pension, 401(k), 403(b), 457 plan, or IRA — to a Rollover IRA. Once you have consolidated your investments, your money continues to grow tax deferred until withdrawal.
For conservative investors, an FDIC-insured savings IRA option is offered by First Tennessee Bank. Investment options such as stocks, mutual funds, and bonds are available through FTB Advisors, Inc.
- Move money from a 401(k), 403(b), 457, or other company plan to a tax-deferred IRA, or from one IRA to another
- Pay no income taxes or penalties on the money you move, assuming certain conditions are met
- Tax-deferred growth until you withdraw money
- Withdrawals are taxed as ordinary income*
- Choose a savings IRA or brokerage IRA option
- Ideal if you are changing jobs or want to consolidate
- Withdrawals are allowed for certain home purchases, college tuition, and major medical expenses without penalty by the IRS
- Freedom to rollover to another company plan at a later date
*Early withdrawal penalties on earnings prior to age 59½ are 10%, with possible state penalties as well.
Insured Savings IRAs:
- FDIC-insured for up to $250,000
- Based on variable rate savings or CDs
- Will not lose principal value
- No account opening or maintenance fees
- Early withdrawal penalties may apply to CDs redeemed before maturity date
- Minimum investments beginning at $500
- Returns fluctuate based on investments
- Self-directed or professionally-directed
- Opportunities for higher returns, or for principal to lose value
- More risk, not FDIC-insured
- Minimum investment is $2,000
The Securities and Exchange Commission requires broker-dealers to publish certain order related data. Click here to view this data as required by Rule 606.
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