Generally, an investor changing jobs or leaving the workforce may utilize either a Direct Rollover or Indirect Rollover election to continue their retirement savings outside of their employer-sponsored retirement plan.   The Direct Rollover method transfers the assets directly from the retirement plan into the investor's IRA, avoiding the 20% mandatory IRS withholding.  No assets are transferred directly to the IRA owner. This option to transfer retirement assets has no age limitations.

Cash and securities held within an employer-sponsored retirement plan, such as a 401(k) or 403(b) plan, may be re-located elsewhere, either in an IRA account or another employer-sponsored retirement plan.  The plan administrator is required to provide a reasonable direct method of asset transfer.  Completion of a Direct Rollover form issued by the administrator may be required, in some cases.  Therefore, it is important to check with the plan administrator.

For those transfers that require a broker-supplied Direct Rollover form, Interactive Brokers provides a convenient Direct Rollover Transfer In Authorization form.  Completing and mailing the form directly to Interactive Brokers will begin the transfer of cash balances only into a Traditional IRA, Rollover IRA, or SEP-IRA.  Non-cash direct rollovers are currently not available.

Interactive Brokers will forward the Direct Rollover request to the plan administrator for processing.  Funds may be transferred by either wire transfer or check directly to Interactive Brokers.

To initiate a Direct Rollover from your retirement plan, go to the Funds Management section of the Account Management Menu.  Choose Cash Transfers for this Cash Deposit Transaction and select the method Direct Rollover (IRA) to initiate the process.  Contact the Funds & Banking Group with any additional questions.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this article was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.

Per Indian regulations, trading access to the Indian financila markets for individuals residing outside India is currently restricted to "Non-Resident Indians" ("NRIs") only.

NRIs are defined in the Indian Foreign Exchange Management Act of 1999 and the Indian Foreign Exchange Management Deposit Regulations of 2000.

In short, to qualify for NRI status you must:

a. Reside outside of India for more than 182 days per year, and;

b. Hold Indian citizenship, or;

c. Be a Person of Indian Origin as defined in the Indian Foreign Exchange Management Deposit Regulations of 2000.

Please note that applicants must satisfy criteria (a) and criteria (b) or (c) and will be prompted to review the aforementioned legislation and confirm their atatus at the point of application.  To trade Indian products as a NRI, new or existing customers may apply for an account through the IB website.  

In the case of an account requesting 'Cash' trading permissions the minimum age requirement is 18 (for joint accounts, both parties must be at least 18 years of age).

In the case of an account requesting 'Margin' trading permissions the minimum age requirement is 21 (for joint accounts, the primary account holder, at a minimum must be at least 21 years of age.  The secondary joint account owner must be at least 18 years of age).

Joint Tenants with Rights of Survivorship (JTWROS)

This is an account type where there is not a specific fractional financial interest in the assets held. Each account owner has an equal right to the assets held in the account. In the event of death or declaration of incompetency of any account owners, account ownership passes to the survivor.

Joint Tenants in Common (TIC)

Account type where each owner has a percentage ownership of assets in the account. A specific ownership is assigned to each individual. In the event of death or declaration of incompetency of any account owners, the deceased owner's percentage is retained by that owner’s estate, and is not passed to the surviving tenant.