Indirect Rollover

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.

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.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Individual Retirement Account — An Individual Retirement Account (or IRA) is a retirement plan account that provides some tax advantages for retirement savings in the United States.Legal basisThe individual retirement account and related vehicles (see Definitions) were created… …   Wikipedia

  • Cayman Islands — Cayman Islands …   Wikipedia

  • Tractor — This article is about a vehicle used in agriculture or construction. For the power unit of a semi trailer truck (articulated lorry), see tractor unit. For other uses, see Tractor (disambiguation) …   Wikipedia

  • Glossary of firefighting — Note: This list does not include firefighting equipment, i.e., tools and apparatus used by firefighters. Please refer to Glossary of firefighting equipment for such terms. : Note: This list is incomplete. You can help Wikipedia by… …   Wikipedia

  • Off-road vehicle — ORV redirects here. For the Austrian cycling governing body, see Österreichischer Radsport Verband. Mercedes Benz Unimog in the Dunes of Erg Chebbi in Morocco. Note the high ground clearance due to Portal gear axles An off road vehicle is… …   Wikipedia

  • Stryker — Infobox Weapon name=Stryker caption=M1126 Stryker ICV origin=flagcountry|United States type=Armored personnel carrier is vehicle=yes crew=2+9 length= 6.95 m (22.92 ft) width= 2.72 m (8.97 ft) height= 2.64 m (8.72 ft) weight= ICV: 16.47 t (18.12… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk …   Wikipedia

  • Tire — This article is about tires used on road vehicles, including pneumatic tires and solid tires. For railroad tires, see railway tires. For other uses, see tire (disambiguation) or tyre.Tires, or tyres (in American and British English, respectively) …   Wikipedia

  • BMW Z3 — Infobox Automobile name=BMW Z3 manufacturer=BMW production=1996 ndash;2002 assembly=Spartanburg, South Carolina class=Roadster predecessor=BMW Z1 successor=BMW Z4 layout=FR layout platform=BMW E36 body style=2 door convertible 2 door coupé engine …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”