You Asked Us - Rollovers and Transfers
- Q: Assuming I am eligible to make withdrawals from my qualified plan or 403(b) account, can I rollover the withdrawn amounts to my IRA?
A: It depends. First, the receiving IRA must be a Traditional (including a SEP) IRA. These amounts cannot be rolled over to a SIMPLE IRA or a Roth IRA. And, the amount must be rollover eligible. Rollover eligible amounts usually include all of your account balance, except for the following amounts.
- Part of a series of substantially equal payments mad
- over a period of 10 years or longer
- over the participant’s life or life expectancy, or over the joint lives or joint life expectancies of the participant and the participant’s designated beneficiary
- Required minimum distribution amounts
- Any distribution which is made upon hardship of the participant, or in the case of a 457(b) plan, any distribution on account of an unforeseeable emergency
- Death distributions made to nonspouse beneficiaries , unless the plan allows such rollovers
- Distributions due to a qualified domestic relations order (QDRO) paid to a nonspouse alternate-payee
- Return of an excess contribution, excess deferral, or excess annual addition, together with allocable income
- The cost of life insurance coverage
- Deemed distributions upon the default of a participant loan
- Dividends paid on employer securities in an employee stock ownership plan (ESOP)
See IRS Publication 575 for more information
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