Distribution Rules, Alternatives And Taxation - Direct Transfer

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


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RELATED TERMS
  1. Direct Transfer

    A transfer of assets from one type of tax-deferred retirement ...
  2. Rollover IRA

    A special type of traditional individual retirement account into ...
  3. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  4. Eligible Transfer

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  5. Rollover

    A rollover is when you do the following: 1. Reinvest funds from ...
  6. Transfer

    A change in ownership of an asset, or a movement of funds and/or ...
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