Generally, the term “rollover IRA” refers to an IRA that you establish to receive funds from an employer retirement plan like a 401(k). A rollover IRA is also sometimes referred to as a “conduit IRA.” When you roll funds over from an employer plan to an IRA, your financial institution may suggest that you use […]
Rollover IRA
What’s the Difference Between a Direct and Indirect Rollover?
If you’re eligible to receive a taxable distribution from an employer-sponsored retirement plan [like a 401(k)], you can avoid current taxation by instructing your employer to roll the distribution directly over to another employer plan or IRA. With a direct rollover, you never actually receive the funds. You can also avoid current taxation by actually […]
Can the IRS Waive the 60-Day IRA Rollover Deadline?
If you take a distribution from your IRA intending to make a 60-day rollover, but for some reason, the funds don’t get to the new IRA trustee in time, the tax impact can be significant. In general, the rollover is invalid, the distribution becomes a taxable event, and you’re treated as having made a regular, […]
