Direct Transfer
A direct transfer of retirement plan funds from one plan to another, without coming into possession of the individual taxpayer, allows the taxpayer to avoid the 20% withholding on a rollover. There are two types of direct transfers:

  1. Trustee-to-Trustee Transfer – A transfer of traditional IRA funds directly from one trustee to another. Because it is not considered a rollover, such transfers are not affected by the one-year waiting period applied to rollovers.
  2. Direct Rollover – A transfer from an employer's qualified plan directly to the trustee of a traditional IRA.

Required Minimum Distributions

Related Articles
  1. Retirement

    Direct vs. Indirect IRA Rollovers: Which Is Best?

    Direct and indirect retirement account rollovers each have their pros and cons.
  2. Retirement

    Wealth-Building IRA Rollovers

    Rollovers allow your tax-deferred retirement assets to grow, even when the world around you is changing.
  3. Retirement

    Avoid the Most Common IRA Rollover Mistakes

    Avoid paying excess taxes by learning some simple transfer rules.
  4. Investing

    Avoid These Common IRA Rollover Mistakes

    Rolling over an IRA can lead to higher returns and other perks; but avoid these common mistakes.
  5. Investing

    Breaking Down Energy Transfer's Corporate Anatomy (ETE, ETP)

    Recently, Energy Transfer Partners (NYSE: ETP) and its general partner, Energy Transfer Equity (NYSE: ETE), completed the announced merger with Regency Energy Partners, a move that was designed ...
  6. Financial Advisor

    3 Costly Retirement Account Mistakes to Avoid

    These are the most common pitfalls investors should try to avoid when it comes to retirement accounts.
  7. Investing

    What Does a Transfer Agent Do?

    Transfer agents maintain the records and documents related to shareholder accounts.
  8. Investing

    A Rollover Mulligan for Your 401(k) Distribution

    The IRS announced that it has established a sort of Mulligan designed to help recipients of retirement plan distributions.
  9. Investing

    Best Ways to Send Large Sums of Money Abroad

    Understand why it may be difficult to send large sums of money internationally. Learn about the top five ways to send large sums of money abroad.
  10. Managing Wealth

    Getting Rollovers Right: Webinar

    This webinar will look at the primary reasons to properly manage a rollover and the increasing options with the advent of automated investments.
Frequently Asked Questions
  1. What are the primary differences between a closed end investment and an open end investment?

    Learn what the primary differences are between open-end investments and closed-end investments, and the implications for ...
  2. Why is Ireland sometimes referred to as a tax haven?

    Learn why Ireland is a desirable location for corporations, how low the country's tax rate is and what taxation and economic ...
  3. What is the history of binary options?

    Discover the history of binary options trading, which is now one of the fastest growing investment market vehicles available ...
  4. How did Richard Branson make his fortune?

    Learn how Virgin Group tycoon Richard Branson earned his billions. Follow his journey from Virgin Records to the corporate ...
Trading Center