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Rollovers and Transfers to a Traditional IRA
There are several ways to move your 401(k) or 403(b) retirement plan assets to
a Traditional IRA, or to transfer all of your IRAs to TIAA-CREF.
A direct rollover IRA allows you to move a distribution from a qualified retirement
plan and avoid federal tax withholding and early withdrawal penalties because
the distribution is made directly to your IRA.
An indirect rollover allows you to move qualified retirement assets to an IRA
within 60 days of receiving a distribution. However, distributions are generally
subject to mandatory 20% federal income tax withholding, and state and local taxes
may also apply. Any portion of the distribution that is not rolled over, including
the taxes withheld, is treated as taxable and may also be subject to a 10% early
withdrawal penalty.
Open a Traditional IRA Account Now
There may be tax consequences associated with any transfer of assets. Non-direct transfers may be subject to taxation, surrender charges and penalties. Consult with your tax advisory regarding your personal situation.
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