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Rollovers, Direct Rollovers and Transfers

A rollover, direct rollover or transfer will allow you to move your assets from one tax-advantaged retirement plan into another.  This will allow you to avoid possible income and penalty taxes and continue tax-deferred growth until withdrawn. There are unique differences with each type so we recommend you consult your tax or legal advisor to see which option is best for you.


  • Rollover assets are paid directly to the IRA owner
  • The exact amount removed from one IRA must be deposited into a like IRA within 60 calendar days of receipt to avoid a penalty. The 60-day period begins the day after you receive the distribution
  • You may only transact one (1) rollover during any twelve month period, per IRA account
  • This transaction type is reported to the IRS when the asset exits and enters the account(s)

Direct Rollovers

  • Used to transfer a qualified employer plan into an IRA or another qualified employer


  • IRS reporting will occur
  • Assets are paid directly to the IRA or other qualified employer plan without you having custody of the assets
  • If the entire amount of the qualified employer plan is directly rolled into an IRA, there will be no federal income tax withhold
  • Distribution amounts you choose to retain from a qualified employer plan, not included in your direct roll over, may be subject to a 20 percent federal income tax withholding at time of distribution, may be taxed as ordinary income and may incur a 10 percent additional penalty tax if younger than 59 ½
  • Rollovers of qualified employer plans to Roth IRAs are generally taxed as ordinary income but avoid the 10 percent penalty tax


  • Occurs when IRA assets are moved directly from one IRA to another IRA without the account owner having custody of the assets
  • There are no limits to the number of transfers you may do in a year
  • Does not generate the IRS reporting that occurs with a Rollover


Consult with a tax advisor for assistance in determining your eligibility of this product and your contribution levels. This information is not intended to provide legal or tax advice, but merely provide an overview of the features of this product. For specific information related to your individual circumstances, you are encouraged to consult your tax or legal professional.

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