Knowledgebase

Will taxes be withheld from my distribution?

IRAs: An IRA distribution paid to you is subject to 10% withholding unless you elect out of withholding or choose to have a different amount withheld. You can avoid withholding taxes if you choose to do a trustee-to-trustee transfer to another IRA.
Retirement plans: A retirement plan distribution paid to you is subject to mandatory withholding of 20%, even if you intend to roll it over later. Withholding does not apply if you roll over the amount directly to another retirement plan or to an IRA. A distribution sent to you in the form of a check payable to the receiving plan or IRA is not subject to withholding.

Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by...

Why roll over?

When you roll over a retirement plan distribution, you generally don’t pay tax on it until you...

Direct rollover – If you’re getting a distribution from a retirement plan, you can ask your...

When should I roll over? You have 60 days from the date you receive an IRA or retirement plan...

You generally cannot make more than one rollover from the same IRA within a 1-year period. You...