West Virginia State Life Insurance Practice Exam

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Study for the West Virginia State Life Insurance Exam. Utilize flashcards and multiple choice questions with hints and explanations. Prepare to ace your exam!

Practice this question and more.

How long does an individual have to "rollover" funds from an IRA or qualified plan?

30 days
45 days
60 days
90 days

The correct answer is: 60 days

An individual has 60 days to "rollover" funds from an IRA or qualified plan. This timeframe is crucial because it allows the account holder to transfer funds from one retirement account to another without incurring taxes or penalties. The Internal Revenue Service specifies this 60-day period during which the account holder must complete the rollover process. If the funds are not rolled over within this timeframe, the withdrawal may be subject to income tax and potentially an early withdrawal penalty, depending on the individual's age and specific circumstances. Therefore, understanding this rule is essential for maintaining the tax-advantaged status of retirement savings.