Rollovers

A rollover is a tax-free distribution of cash or other financial assets from one retirement plan to another retirement plan.  The contribution to the second retirement plan is called a “rollover contribution.”

You can roll over amounts from the following retirement plans into a Traditional IRA:

• A traditional IRA.
• An employer's qualified §401(k) retirement plan for its employees.
• A nonprofit §403(b) tax-sheltered annuity plan.
• A state or local government §457 deferred compensation plan.

You can roll over amounts from the following retirement plans into a Roth IRA:

• A Roth IRA.
• An employer's qualified Roth §401(k) retirement plan for its employees.
• A nonprofit Roth §403(b) tax-sheltered annuity plan.
• A state or local government Roth §457 deferred compensation plan.

Most employer-sponsored plans do not offer any option to roll over funds from any other plan into their retirement plan.

There are two forms of Rollover contributions:

1. Direct rollovers.  Cash or other financial assets are transferred by the original fiduciary directly to the new fiduciary.  All direct rollovers will be reported on a Form 1099-R with Code “G” in Box 7 and must be reported on Form 1040 or Form 1040-SR for the year that the rollover took place.
2. Indirect rollovers.  Cash or other financial assets are transferred by the original fiduciary directly to you.  You have sixty (60) days to complete the transfer of the cash or other financial assets to the new fiduciary.  All indirect rollovers will be reported on a Form 1099-R with the appropriate Distribution Code in Box 7 and must be reported on Form 1040 or Form 1040-SR for the year that the rollover took place.