2007-12-12 18:47:26 · 3 answers · asked by don_dove 1 in Business & Finance ➔ Taxes ➔ United States
A direct rollover is not taxed. If you receive the funds and make the rollover contribution you will lose 20% of the funds disbursed to withholding of taxes and must make that 20% up with other funds within the 60 day window that you are allowed to complete the rollover. If you don't make up that 20%, it will be taxed as an early distribution and will be taxed as ordinary income plus a 10% penalty if you are under age 59 1/2 at the time of the distribution.
2007-12-12 22:20:13 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Into a rollover traditional IRA? They aren't taxed at the time of the rollover at all. The money is taxed when it is ultimately withdrawn.
If it's into a Roth, then it's taxed at ordinary income rates, without a penalty, at the time of the rollover.
2007-12-13 08:43:42 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
401K to an IRA?
An IRA to another IRA?
an IRA to a ROTH IRA?
Trustee to trustee or you get a check and walk it over?
2007-12-12 18:53:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋