A rollover is a tax-free distribution of cash or other assets to a plan participant, who then contributes the assets to another retirement plan. The contribution to the second retirement plan is called a "rollover contribution."
- Rollovers to a Traditional IRA – Allowed from the following types of plans:
- Another traditional IRA
- An employer's qualified plan
- 457 plan
- 403(b) plan
- Waiver – The IRS may waive the 60-day requirement in the event of a casualty, disaster or other event beyond the taxpayer's reasonable control. An automatic waiver will be granted if failure to meet the 60-day time limit is a result of a financial institution error, and very specific requirements are met.
- Rollovers completed after 60 days – Amounts not rolled over within the 60-day limit are treated as a taxable distribution. They are taxable in the year distributed even if the 60-day period expires in the following year. A 10% early withdrawal penalty may also apply.
- One-year waiting period – An individual may only make one tax-free rollover distribution from a traditional IRA within a 12-month period. There is also a 12-month waiting period of any amount distributed into another IRA.
RetirementAvoid paying excess taxes by learning some simple transfer rules.
Financial AdvisorThe IRS has made it easier and less costly for clients who miss the 60-day IRA rollover window.
InvestingThe Internal Revenue Service is providing some relief to certain taxpayers who may have missed the 60-day window allowed for IRA and 401(k) rollovers.
RetirementRollovers allow your tax-deferred retirement assets to grow, even when the world around you is changing.
Financial AdvisorWhen you leave a job, you have some decisions to make about what to do with your 401(k). Here are some choices.
RetirementFor years, IRA owners have been allowed to roll over their money from one IRA to another once a year without penalty, for each IRA account they had. A tax court ruling in January 2014 has brought ...
Financial AdvisorThe new self-certification process will make it much easier and cheaper to correct a late rollover of a qualified retirement plan to an IRA.
Financial AdvisorThe IRS has introduced a waiver that under certain circumstances will aid those who miss the 60-day window for retirement plan rollovers.
RetirementIn the retirement savings realm, rollover refers to transferring the holdings in one retirement account into another.