Automatic Rollover IRAs
Navigating you back to your retirement path.
Automatic Rollover IRAs
If you received a letter from GoldStar Trust Company regarding an Automatic Rollover Individual Retirement Account (IRA), your former employer has chosen us to help reunite you with your retirement savings and provide IRA custodial services.
Here is what happened:
- You left retirement funds behind at a former job.
- We have those funds.
- We’ll help you claim your money.
VERIFY YOUR IDENTITY
Your retirement funds are being held in a self-directed IRA established for you by your former retirement plan sponsor. In order to claim the funds in this account, complete an Account Agreement with your updated personal information so we can verify you are the rightful owner.
For former ROTH 401(k) accounts – Please call the Investor Service Center at 1-800-486-6888.
DECIDE WHAT TO DO WITH YOUR MONEY
Once you’ve successfully claimed your funds, the balance in your new IRA will remain in an interest-bearing deposit account until you instruct us what to do next. A modest fee is deducted from the balance once a year if no further action is taken.
There are several options available once you take control of your account:
- Request a check
- Direct an investment of your choosing
- Add funds to this IRA from other IRAs you may have
- Transfer the balance in this IRA to another IRA
CAUTION: An IRA distribution is a taxable event! Distributions will be reported to the IRS on Form1099R. Always consult your tax advisor before taking a distribution.
Choose from a wide range of alternative investments in addition to traditional stocks, bonds and mutual funds.
Self-Directed IRA fees apply.
Annual fees vary depending on the asset type(s) you choose to invest in.
IRA Transfers: Did you know multiple IRAs can be consolidated into one account? Transfer IRA funds you have elsewhere to your GoldStar IRA.
Contributions: you may be eligible to contribute to an IRA if you have earned income and depending on your age. Consult your tax advisor regarding contribution eligibility..
Frequently Asked Questions
Can’t find what you’re looking for? Contact us at 1-800-486-6888 or via email: firstname.lastname@example.org
Investor Services Hours: 7am-5pm CST M-Th., 7am-4pm Fri.
Who is GoldStar Trust Company?
GoldStar Trust Company is one of the nation’s leading Self-Directed IRA custodians with over twenty years of experience. GoldStar offers unique retirement solutions that allow investors to diversify their IRA portfolio with precious metals and other alternative investments. Our diversified investment options and commitment to personal customer service have set us apart from our competitors.
How did GoldStar Trust Company obtain my account?
The funds were part of your company sponsored retirement plan. The retirement plan contains a provision allowing the plan trustee(s) to distribute the participant’s vested account without consent in the event that the account holder cannot be reached. Per the Economic Growth & Tax Relief Reconciliation Act of 2001 accounts under the amount of $5,000 can be automatically rolled over into an Automatic Rollover IRA.
Do I still have a qualified plan?
No. Your company sponsored retirement plan is no longer active now that it has been transferred to GoldStar. You now have a corresponding Individual Retirement Account (IRA) to the qualified plan that was automatically rolled over. If you had a Traditional Qualified Retirement Plan (ie. 401k, 403b, 457) previously a Traditional IRA will be created. If you previously had a Roth 401k plan, then a Roth IRA was created for you.
What is an IRA and what are the benefits of continuing to maintain the IRA?
An IRA is an Individual Retirement Account set up through a financial institution that allows individuals to save for retirement with tax-free growth or on a tax-deferred basis. The tax benefits allow savings to potentially grow more quickly than in a taxable account.GoldStar is a self-directed IRA custodian which allows investors the ability to invest within a wide range of investment options. Examples include: Mutual Funds, Hedge Funds, Publically Traded Securities, REITS, and many other options. For a complete list please see our Fee Schedule.
How do I claim my account – what are my options?
To claim your Automatic Rollover IRA GoldStar has tried to make it as easy as possible to reunite you with your retirement savings. In order to officially setup your account with GoldStar all we need is a completed account application. You and GoldStar both must sign the account application before the IRA can be put into effect. In order to comply with the USA Patriot Act, we must be able to identify our customer. All new accounts must provide us with either the driver’s license information; a photocopy of an unexpired, photo-bearing, government-issued identification, such as a passport, military, veteran or similar ID; or a notarized document.
Are there fees associated with the Automatic Rollover IRA?
Until the Rollover IRA has been claimed there will be a modest fee automatically deducted annually from the account. Once the account has been claimed the fees associated with the account will be based off of our normal fee schedule and will correspond to the specific assets that will be held within the IRA.
How do I keep my Automatic Rollover IRA at GoldStar?
If you would like to keep your IRA here with GoldStar Trust Company there are several ways you can invest. You may add funds to the IRA by regular contributions, trustee to trustee transfers, or direct rollovers from other qualified plan(s). To have another IRA transferred directly to GoldStar please complete our Transfer Paperwork. To do direct rollovers please contact your current custodian to initiate the process.
Can I transfer my Automatic Rollover IRA to another IRA custodian?
Yes. Once you have officially opened the IRA with GoldStar by completing the Account Application you will have the ability to transfer your IRA here at GoldStar to another IRA custodian. Please contact your new IRA custodian to initiate the transfer. They will have their own paperwork that will be need to completed and submitted to GoldStar. We can accept the forms by fax, email, or regular mail.
What is needed to make a withdrawal or close the IRA?
In order to make a distribution of funds from your IRA here at GoldStar we will require a Withdrawal Authorization form. Distributions taken from an IRA are taxed at your ordinary income rate. If you take an IRA distribution before you attain the age 59 1/2 (early distribution) you may be subject to a 10% penalty. Another option for withdrawal and closure is to do a rollover. Once you receive the funds you have 60 days to roll the funds back into an IRA or qualified account.
What happened to the beneficiaries I had designated at my company sponsored plan?
Since the plan is no longer applicable, any beneficiary elections end when the rollover is made. To add beneficiaries to your IRA here at GoldStar please complete our Designation of Beneficiary form. When you complete the account application there is also a section to add primary and contingent beneficiaries. If you reside in a community property state and your spouse is not 100% primary beneficiary then your spouse must sign off on the designation.
What is an RMD and do I need to take them?
Required Minimum Distributions are required for account holders of Traditional IRA accounts. This IRS regulation begins in the year in which you reach age 70 ½ and for each year thereafter.
What if I had a qualified account with both pre-tax and Roth 401k funds?
GoldStar would setup a Traditional IRA for the pre-tax funds and a Roth IRA for the Roth 401k funds.
What if I received a letter from GoldStar, but the participant is deceased?
The estate of the deceased is the default beneficiary of the IRA. Any beneficiary elections the deceased had made on his/her prior plan ended when the account was automatically rolled over to a GoldStar IRA. The executor of the estate will need to provide an original or certified copy of the death certificate and letters of testamentary naming the executor of the estate to claim the funds. Call our Investor Services department at (800) 486-6888 to begin the process.
What if my personal information is incorrect?
If your social security number was reported incorrectly we will request a copy of your social security card or a signed IRS form W-9 for taxpayer identification number and certification. If your date of birth was reported incorrectly we will request a legible copy of your driver’s license or government issued photo ID.
What are the regular contribution limits?
For the tax year 2016 the regular contribution limit is $5,500 per year. If you are over the age of 50 then you are eligible to make an additional contribution (make up contribution) of up to $1,000 per year; a total $6,500 per year. GoldStar can accept a regular contribution by check or wire.
Did I pay taxes when the Automatic Rollover was completed?
No. Your distribution was rolled directly into an IRA; therefore it is not taxable. Only distributions paid directly to you are taxable.
What is tax form 1099R, and why did I receive one?
Form 1099R is used to report distributions taken from IRAs and qualified plans (Pensions, Annuities Retirement or Profit Sharing Plans). You will receive a 1099R if you have received a distribution of $10 or more from a retirement account. The 1099R also reports conversions, rollovers, and recharacterizations. This form is mailed out by the end of January per law.
What is tax form 5498, and why did I receive one?
Form 5498 is used to report to the IRS the fair market value of IRA accounts. It also reports any regular or rollover contributions made to the IRA for the prior year. Unlike the 1099R form that is mailed by the end of January, the 5498 is mailed out in late May since contributions can be made up until mid-April of the next year.