What is direct rollover and are there any taxes to it?

Question

thanks for any help i can get.

thanks for any help i can get.

Answer 1

A distribution of eligible rollover assets from a qualified plan, 403(b) plan, or a governmental 457 plan to a Traditional IRA, qualified plan, 403(b) plan, or a governmental 457 plan; or a distribution from an IRA to a qualified plan, 403(b) plan or a governmental 457 plan.

Direct rollover assets are made payable to the qualified plan or IRA Custodian/Trustee, never to the individual.

A direct rollover is reportable but not taxable.

Answer 2

A direct rollover is when you put your 401K into a regular IRA. There is no tax. If you transfer the regular IRA money into a Roth IRA, you are taxed. A Roth IRA has different rules so it might be tempting for some people to roll over their IRA into a Roth IRA.

Answer 3

A direct rollover is when one 401K amount is rolled over to another. As far as taxes go, each company is different and it also depends on the amount that you are rolling over. It is all in the fine print....I called my 401K company for assistance when I did mine.