A monetary transfer classified as a rollover but which occurs from one investment company directly to another, often from one investment plan into another (e.g., a 401(k) into an IRA). Direct rollovers must be reported but are not taxed, and therefore annuitants can avoid taxation of distributions by using this method.
a method of transferring funds directly from one IRA to another, or from one qualified retirement plan to another or to an IRA, which avoids the withholding tax on rollovers that pass through the hands of the participant or IRA owner
A direct transfer of funds from a 401(k) or other permissible retirement plan to an IRA. A direct rollover avoids the 20% mandatory income tax withholding that would otherwise apply if the funds were first paid to the employee.
The direct payment of an eligible rollover distribution from a qualified plan (for example, a lump-sum distribution from a 401(k) or 403(b) plan) to the participant’s IRA or another qualified plan that accepts rollovers. By taking a direct rollover rather than a conventional rollover, the participant can avoid mandatory 20% withholding on the distribution from the qualified plan, since the participant did not take custody of the assets.
This is when an eligible qualified retirement plan distribution or IRA distribution is transferred directly from the retirement plan into an individual's IRA or another qualified retirement plan. The individual's employer will not have to withhold 20% for federal income taxes from a direct rollover.
Qualified plan money, other than IRA money, that moves directly from one financial institution to another financial institution. The client never receives the qualified plan money. The transaction occurs between two financial institutions.
A tax-deferred transfer of assets from one qualified retirement plan to another qualified retirement plan or IRA. Sometimes called a "trustee to trustee" transfer. The transfer is made without any funds being sent directly to the plan participant.
a payout of tax-deferred retirement plan money directly from the trustee of a qualified plan to the trustee of another qualified plan or an individual retirement account. A direct rollover does not incur taxes or penalties.
A transfer that qualifies as a rollover, but is done directly from one company to another. Usually, it is from a qualified plan into an IRA . It is reportable, but not taxable. The annuitant can avoid having taxes taken out of the eligible distribution by having a direct rollover.
If a person takes a distribution from 401(k)'s or other retirement plans, the employer is required to withhold 20% of the amount for federal income taxes and income tax will be owed on the proceeds. An alternative is to open a Conduit IRA and do a direct rollover. A direct rollover avoids the 20% withholding and the income tax: the money will continue to be tax deferred in the Conduit IRA.
A tax-free transfer of funds from one retirement plan to another. Distributions from a qualified retirement plan may be transferred to another retirement plan or an individual retirement account (IRA), while funds from an IRA may be rolled over to another IRA.
An eligible qualified retirement plan or Section 403(b) distribution is moved directly from a qualified retirement plan or Section 403(b) tax-deferred annuity to an IRA or to another qualified retirement plan or Section 403(b) tax-deferred annuity. The individual's employer will not have to withhold 20% for federal income taxes from a direct rollover.
A reportable tax-free movement of assets from an employer sponsored retirement plan directly to a Traditional IRA or Qualified Retirement Plan. Qualified Plan's are required to offer this distribution option. All or part of the distribution can be paid directly to a traditional IRA or another eligible retirement plan that accepts rollovers. If the Direct Rollover option is selected, no tax is withheld from the designated distribution that is directly paid to the trustee or custodian of the traditional IRA or other plan. If any part is paid to the participant, the payer must withhold 20% of that part's taxable amount. See IRS Publication 590 for further information.