When I rollover funds from an employer-sponsored or qualified retirement plan, do they need to go directly to a traditional IRA?
No. Per IRS guidelines, Rollovers from a qualified plan can be rolled over into a Traditional or Roth IRA. If the Rollover is made directly to the Roth IRA the transferred amount is subject to income taxation, but avoids the 10% early distribution penalty. You should consult with your plan administrator regarding the permissible withdrawal options allowed under the tax-qualified plan.
Related Questions
- Am I allowed to roll over funds from my employer-sponsored retirement plan to a Traditional IRA at Fort Washington Savings Company?
- When I rollover funds from an employer-sponsored or qualified retirement plan, do they need to go directly to a traditional IRA?
- Can I rollover my Qualified Retirement Plan dollars (I.e. 401(k)) to an existing, traditional IRA?
