Q: I got laid off from a job earlier this year. Now I’ve started my own business. I need to take money out of a retirement account that I had with my previous employer. Can I put the money into a retirement plan that’s designed for self-employed people?
A: Yes, you can certainly roll the distribution from your retirement account into another qualified plan, such as an individual retirement arrangement (IRA) or simplified employee pension (SEP).
You must complete the rollover bythe 60th day following the date thatyou receive the distribution from your previous retirement account. The financial institution where you open your new retirement account should be able to provide the paperwork and guidance you need to make the rollover a smooth process.
The IRS also offers some good publications to help you: