Can You Do a Partial Transfer of an IRA?

Can you do a partial transfer of an IRA

Many individuals opt to transfer their 401(k) funds into an IRA when changing jobs, as this offers greater investment choices and often reduced fees than what their workplace plan offered.

Direct transfers, commonly referred to as trustee-to-trustee rollovers, offer the fastest and simplest means of partial IRA rollovers; however, before initiating such an approach there are a few key points you need to keep in mind before initiating this action.

Access to Alternative Assets

Many individuals may not realize that their retirement assets can include alternative investments such as real estate, precious metals and private equity that offer greater returns and diversification potential.

Real estate can serve as an effective hedge against inflation, with rent typically increasing as prices do. Diversifying your IRA portfolio with alternative assets can protect it against market fluctuations and safeguard retirement savings.

Alternative investments often have lower correlations than traditional assets, which can help mitigate risk and diversify your portfolio more efficiently. This may prove invaluable for investors seeking a secure retirement or the best chance at meeting their retirement goals.

Keep in mind that the IRS has stringent rules regarding what can and cannot be held in an IRA, so when choosing a self-directed IRA custodian (SDIRA), make sure they offer the types of alternative assets you intend to invest in. Furthermore, some alternative investments may take longer to mature or may have lower liquidity than traditional assets so when selecting an asset class.

Yieldstreet, an industry-leading SDIRA provider with more than 420,000 members, can assist your investments across various asset classes – including alternative investments – while providing superior custody services and support.

Access to Alternative Investments

IRAs provide individuals with a versatile investment vehicle to hold alternative assets as part of a diversified portfolio and potentially reduce overall exposure to volatile market moves.

In order to perform a partial rollover, an individual will need to provide their current custodian with their IRA account number and dollar amount that they wish to transfer – this process is known as trustee-to-trustee transfer.

Once they receive this information, the custodian can transfer funds directly into a new IRA – this process usually occurs within 60 days from when they received it.

Direct rollover can make this process significantly simpler than doing it the old-fashioned way, since with the former you must withdraw and redeposit money into an IRA directly yourself – but with direct rollover this step is done for you by having the custodian directly transfer money between accounts without ever touching you directly yourself.

Access to Alternative Funds

Individuals investing with an IRA have access to traditional financial assets like stocks and bonds as well as alternative investments that reflect their personal values, passions and experiences. Such non-public market related investments often increase portfolio diversification.

Alternative investments offer higher returns and greater flexibility, but they come with additional work, rules, and risk. Investors must conduct extensive due diligence on each asset to make sure it fits within IRS definition of an alternative investment.

Alternative investments typically provide some measure of control to investors, whether that means real estate investment or lending money to local businesses. Investors can support revitalization projects that breathe life back into towns.

Addition of alternative assets to an IRA provides individuals the ability to diversify their retirement savings portfolio and meet more of their financial goals. Be it traditional, Roth, SEP or SIMPLE IRA or individual 401(k), alternative investments can serve as powerful supplements to traditional assets held within tax-advantaged accounts.


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