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Definition of 'Indirect Rollover'
A method of transferring assets from a tax-deferred 401(k) plan to a traditional individual retirement account (IRA). With this method, the funds are actually given to the employee via check to be deposited into their own personal account. With an indirect rollover, it is then up to the employee to redeposit the funds into the new IRA within the allotted 60 day period to avoid penalty.
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Investopedia explains 'Indirect Rollover'
Monies transferred by this method are subject to withholding rules which in essence cost the employee 20% of the amount to be transferred. However, the employee has full use of the funds for the entire 60 day period, and has the choice of whether to redeposit into the IRA or not. If the employee chooses not to redeposit, the entire amount is subject to tax.
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Search results for 'Indirect Rollover'
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http://www.investopedia.com/articles/retirement/09/ira-qualified-plan-rollover.asp
... The main types of rollovers are the conduit IRA, the direct rollover, the indirect rollover, the spousal beneficiary rollover, and the non-spouse beneficiary ...
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http://www.investopedia.com/articles/retirement/03/040303.asp
... Should you later decide to roll over assets you received as an indirect rollover, you may either roll over the amount you received or roll over the total ...
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http://www.investopedia.com/university/retirementplans/ira/ira2.asp
... A direct rollover or indirect rollover from a qualified plan, 403(b) plan or a governmental 457(b) plan. There is no time limit ...
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http://www.investopedia.com/articles/retirement/08/qualified-plan-distributions.asp
... used to implement such action are: the conduit rollover; the direct rollover; the trustee-to-trustee transfer; the indirect rollover; ...
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