Whats the difference between a direct rollover and an indirect rollover?
First of all, a rollover is a nontaxable transfer of assets from one qualified retirement plan to another or to an IRA. A direct rollover means that 100% of your balance is transferred (typically by check or wire) to your new employer’s qualified plan or an IRA. An indirect rollover means that 100% of your balance is distributed to you, and it’s your responsibility to transfer that money to a new qualified plan or IRA within 60 days. If you don’t transfer the money within that time period, it will typically be treated as a taxable distribution and may be subject to penalties.
