Why would you consider a Mutual of America Rollover IRA? If you will be retiring or leaving employment soon, you may want to transfer or "roll over" your assets from a qualified retirement plan to our IRA variable annuity contract. Before rolling over funds from plans with other providers, you should review the accounts you have with them to determine the fees and expenses you currently pay and whether there are any surrender charges that may result and to ensure that it is in your best interest to roll over your other accounts to a Rollover IRA.
If you're retiring... If you will soon be retiring and plan to withdraw your money from your employer's pension or retirement plan, you may be able to roll over your benefit to an IRA. An IRA allows you to defer federal income taxes on the rollover amount. Any interest and investment earnings will also accumulate free from federal income taxes until withdrawn. Withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty.
If you're leaving your current job... If you're not retiring but will soon be leaving your current employer, you may be able to roll over the assets in your current retirement plan to an IRA when you leave. Rolling over your retirement plan assets to an IRA allows you to continue to defer federal income taxes and avoid the 10% early withdrawal penalty if under age 59½. In addition, interest and investment earnings will continue to accumulate free from federal income tax until withdrawn.
If you want to change IRA providers... You can transfer from another Traditional IRA (with another provider) to Mutual of America's IRA and continue to enjoy federal income tax deferral on any interest and investment earnings.
Direct transfers If you already have a Traditional IRA with another financial institution or a trustee, you may be able to make a nontaxable direct transfer to a Mutual of America IRA.
Long-term tax advantages All of the interest and/or investment earnings credited to your account accumulate tax-deferred until they are withdrawn.
Single sum distributions
If, instead of a direct rollover, you take a single sum distribution of your retirement assets, 20% will automatically be deducted for mandatory withholding tax. If you're under age 59½, you'll also pay a 10% early withdrawal penalty and regular income tax on the amount received. Provided the rollover is made within 60 days of the distribution, it will not be currently taxable. Distributions not handled by means of a direct rollover to a Traditional IRA are subject to mandatory 20% federal tax withholding.
Learn more about Features & Benefits.
Rollover IRA is a variable annuity contract and is issued on form 3814-IRA or a similar form specific to your state of residence. In the states of Maine, Oregon and Utah, the variable annuity contract is issued on form IRA-2004, or a similar form specific to your state of residence. This contract does not provide additional income-tax deferral advantages beyond those available in an IRA. You should carefully consider an annuity contract's other features before making a decision, as well as the potential for a loss of account value due to the Rollover IRA's variable investment choices.
Mutual of America's IRAs are individual variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract’s other features before making a decision.
Form IRA-2004 or applicable state variation.