Rollover Guide

  1. Required distributions and nonspousal death benefits can’t be rolled over.
  2. You can make only one tax-free, 60-day, rollover from one IRA to another IRA in any one-year period no matter how many IRAs (traditional, Roth, SEP, and SIMPLE) you own. This does not apply to direct (trustee-to-trustee) transfers, or Roth IRA conversions.
  3. Taxable conversion.
  4. Nontaxable conversion.
  5. Only after employee has participated in SIMPLE IRA plan for two years.
  6. Required distributions, certain periodic payments, hardship distributions, corrective distributions, and certain other payments cannot be rolled over; nonspousal death benefits can be rolled over only to an inherited IRA, and only in a direct rollover.
  7. May result in loss of qualified plan lump-sum averaging and capital gain treatment.
  8. Direct (trustee-to-trustee) rollover only; receiving plan must separately account for the after-tax contributions and earnings.
  9. 457(b) plan must separately account for rollover–10% penalty on payout may apply.
  10. Nontaxable dollars may be transferred only in a direct (trustee-to-trustee) rollover.
  11. Taxable dollars included in income in the year rolled over.
  12. 401(k), 403(b), and 457(b) plans can also allow participants to directly transfer non-Roth funds to a Roth account if certain requirements are met (taxable conversion).

NOTE: Plans are not legally required to accept rollovers. Review your plan document.