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Individual Retirement Plans

Rollover IRA
When you change jobs or retire, you'll need to decide what you'll do with your employer sponsored retirement plan. One of the best ways to gain control of your retirement savings is to roll over your 401(k) money into a Rollover IRA. If a rollover is done properly and all rules are followed, you will not incur any taxes or penalties.

Call us at 888-862-9923 or email us to roll over your 401(k) into a Rollover IRA. We'll help you complete your former plan's withdrawal paperwork and guide you every step of the way.

How do I get started?

Choose your preferred investment option:

Azzad Mutual Funds

Ethical Wrap Program

Download Important Information

Prospectus

Wrap Brochure

Minimum to open

$500

$10,000*

Download Rollover Application

Application

Contributions

Eligibility

Anyone under age 70½ who has left a job

Contribution limit

Usually funded with eligible rollover distributions from employer-sponsored plans (such as 401(K) plans). There is no limit on the amount you may roll over.

Deadline

There is no deadline for a direct rollover. This is the best way to preserve the tax-free growth of your employer retirement plan. However, if you receive a Rollover check, you must deposit it into an IRA (or other qualified plan) within 60 days of its issuing date to avoid taxes and penalties.

Tax Advantages

Contributions

Tax-deductible (Subject to certain limitations)

Earnings

Grow tax-deferred

Withdrawals

Taxable (except for withdrawals of nondeductible contributions)

Withdrawals

Withdrawals after age 59½

Withdrawals are taxable income in the year received.

Withdrawals before age 59½

10% early withdrawal penalty before age 59½ (and does not meet one of the early withdrawal exceptions). Withdrawals will be taxed. Penalty-free withdrawals permitted before age 59½ for first-time home purchase up to $10,000, higher education expenses or in event of disability or death.

Required withdrawals at age 70½

You must take out what are known as required minimum distributions from your IRA when you reach age 70½

Key Strengths

Key Tradeoffs

Not a taxable distribution
Allows continued tax-deferred growth
No limit on how many times you may move funds into a Rollover IRA with a direct rollover.
A tax-smart way to build your retirement nest

Indirect rollovers may be subject to 20% mandatory tax withholding
A Rollover IRA has the same distribution rules as a Traditional IRA.

* This information is not intended as tax advice. For more complete guidance on your particular financial situation, please consult your tax advisor or speak to an Azzad investment advisor at 888-862-9923. Please make sure to read the Azzad mutual funds' prospectus or Ethical Wrap Program's brochure before you invest. The wrap minimum applies after meeting standard minimum with other accounts.

You've left your job, so what do you do with your retirement savings?
You can take the money and run. Not so fast—you'll probably have to pay federal income tax, possibly a penalty tax if under age 59 ½ and your money won't grow tax deferred anymore. Consider this hypothetical example:
Sam has left his job at XYZ, Inc. He chooses to cash out his 401(K) to pay the down payment on a new house. He cashes out $20,000. He now owes the IRS $2,000 as an early withdrawal penalty (10%) and he's going to have to pay the IRS federal taxes (since he's in the 27% tax bracket as a result of the distribution) he pays $5,400. He ends up with only $12,600.*
A better option is to roll it over. Rolling over your 401(K) retirement money into a Rollover IRA with Azzad is a great way to gain control. Plus, if done correctly, you'll preserve your account's tax-free growth. Consider what you gain when you roll over your plan to an Azzad Rollover IRA:

A disciplined, ethical investment approach: We combine financial expertise with an ethical investment philosophy to build a promising portfolio of companies you can respect.
Choice of well diversified, professionally managed portfolios: Whether you choose to invest your Rollover IRA in the Ethical Wrap Program or the Azzad Funds, we offer a variety of investment objectives.
Personalized guidance from experienced advisers: You'll gain expert advice from advisers who will guide you before and after you retire. They'll show you how much you'll need to save and the best way to manage your account. Already retired? They'll help you calculate required minimum distributions, and adjust your asset allocation to help you enjoy retirement.

Rolling over your 401(K) is easy. We'll take care of the details for you. Contact us at 888-862-9923 to get started. Rolling over your 401(K) or other employer sponsored retirement plan into a Rollover IRA with Azzad is easy. We'll help keep you on track to a comfortable retirement. Just follow these easy steps:

Call your old plan administrator. Inform them that you want to roll over your old plan into a Rollover IRA with us.
Choose how you'll invest your Rollover IRA. Decide between the Azzad mutual funds or the Ethical Wrap Program. We can help you decide. Complete the proper paperwork to open your account.
Review, complete and sign the withdrawal form sent to you by the plan administrator. Remember, it's generally best to do a direct rollover rather than an indirect rollover.
In the event that you personally receive the funds, be sure to deposit them into your Rollover IRA account within 60 days to avoid taxes and penalties.

Congratulations! We think you've made a smart decision that will keep you on track to a comfortable retirement. Best of all: you can now get your retirement savings in line with your values.
If you have any questions or need more advice, call us 888-862-9923 or email us. Traditional IRA account holders are required to take a minimum distribution each year; beginning no later than April 1 of the year following the year they turn age 70½. Of course, you can always withdraw more than the required minimum if you wish, but if you withdraw less than required, you will be subject to a federal penalty tax.