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

    Wealth-Building IRA Rollovers

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

    Avoid Taxes on IRA Rollovers

    For 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 ...
  3. Financial Advisor

    How New IRA Rollover Rules Impact Your Clients

    The IRS has made it easier and less costly for clients who miss the 60-day IRA rollover window.
  4. Investing

    IRS Cuts Some Savers a Break on IRA/401(k) Rollovers

    The 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.
  5. Financial Advisor

    Best Ways to Roll Over Your 401(k)

    When you leave a job, you have some decisions to make about what to do with your 401(k). Here are some choices.
  6. Retirement

    Avoid the Most Common IRA Rollover Mistakes

    Avoid paying excess taxes by learning some simple transfer rules.
  7. Personal Finance

    Transferring Credit Card Balances To A New Card

    Before you take advantage of that new credit card's 0% interest balance transfer offer, read our step-by-step guide.
  8. Financial Advisor

    How to Help Clients Avoid Late IRA Rollovers

    Here are the things advisors need to consider when advising clients on late IRA rollovers.
  9. Investing

    Avoid These Common IRA Rollover Mistakes

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

    5 Money Transfer Tips For Foreign Workers

    If you are working in the U.S. as a foreign worker, here are some tips for sending money back home.
Frequently Asked Questions
  1. What is the formula for calculating the current ratio?

    Find out how to calculate the current ratio and what that result can tell you about a potential investment.
  2. What is the difference between positive and normative economics?

    Positive economics is objective and fact based, while normative economics is subjective and value based.
  3. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The concept of CAGR is relatively straightforward and requires only three primary inputs: an investments beginning value, ...
  4. How do you calculate return on equity (ROE)?

    Return on equity (ROE) is a ratio that provides investors with insight into how efficiently a company (or more specifically, ...
Trading Center