The concept of transfer refers to the direct movement of funds within retirement accounts, often distinguished legally from rollovers, and can encompass various forms of fund movement between accounts without necessarily involving a withdrawal.
This entry explains the key differences between transfers and rollovers in the context of moving retirement funds. It covers definitions, historical context, types, key events, detailed explanations, mathematical models, applicability, and related terms.
The IRA rollover provision allows individuals receiving lump-sum payments from their employer's pension or profit-sharing plan to transfer these funds into an IRA investment plan within 60 days, tax-free. However, if funds aren't transferred directly to an eligible plan, 20% of the distribution is withheld by the payor.
A comprehensive definition of rollover, covering its applications in finance, debt management, and retirement account transfers.
