You have a Big Decision when You leave the DROP – What to do with Your Lump Sum ?
Your Lump-Sum DROP money is paid in one of three ways :
- As a lump-sum payment, with mandatory 20% withheld for Federal Income Taxes. This entire check is 100% taxable as Ordinary Income. Ouch !
- As a direct 100% rollover to your own personal “ Self-Directed IRA Rollover “ investment account. There are no taxes due on this Rollover.
- Or as a combination: a partial lump-sum payment to you, with 20% withheld for Income Taxes, and the remainder rolled over non-taxable to your new IRA.
What is a “Self-Directed IRA”?
- Do you know how to complete all of your DROP Exit paperwork, the process, and the Deadlines?
- Fraser can help you complete your DROP Termination paperwork, the right way.
- Fraser can also help you establish your new Self-Directed IRA Rollover account, the right way.
The Total Advisor, LLC is an Independent Retirement, Health Insurance, Tax and Estate Planning Firm owned by Fraser Allport. Fraser Allport is not associated with The State of Florida. Investment Advisory Services are offered through Coppell Advisory Solutions, LLC, dba Fusion Capital Management, an SEC Registered Investment Advisor. Florida License # A 004461. Please see full Disclosure at www.fraserallport.com.