The Internal Revenue Code (IRC) provides for a special tax-deferred savings account known as an individual retirement account (IRA). An IRA is a personal savings account that allows individuals to save money for retirement on a tax-deferred basis.
There are two types of IRAs: the traditional IRA and the Roth IRA. The traditional IRA is subject to income tax when the funds are withdrawn, while the Roth IRA is not subject to income tax when the funds are withdrawn.
The rules for rollovers between different types of IRAs are complex. In general, the funds from a traditional IRA can be …