Direct Rollover Guide
In a direct rollover, an eligible retirement-plan distribution is paid directly to the receiving plan or IRA rather than to you.
Main advantage
The IRS says taxes are not withheld from the amount transferred in a direct rollover. This can simplify the mechanics compared with taking a distribution personally and redepositing it.
Before initiating
- Confirm the distribution is eligible.
- Confirm the receiving IRA accepts the rollover.
- Verify payee and account-title instructions.
- Keep copies of all plan and custodian records.