A: A direct rollover includes two features. (I) it usually involves a non-IRA retirement plan, such as a qualified plan, 403(b) account or 457(b) account on the receiving or delivering end, and (II) the distributed assets are payable to the receiving custodian/trustee or retirement plan, for the benefit of the participant. For instance, if the assets are being moved from a qualified plan to an IRA, the following is an example of how the payment would be reflected on the instrument of payment “IRA FBO John Brown- ABC as Custodian or ABC as Custodian for John Brown IRA”.
