IRA Rollover

Posts Tagged ‘rules’

Question: Are there any time constraints on doing a direct rollover from a 401(k) to an IRA, after a job loss?

I want to rollover funds from my old 401(k) plan to a traditional IRA. Does it matter when I do this, as far as tax implications and things of that nature? For example, can I do it 6 months after I lost my job, just the same as if I had done it 6 days after I lost it?

I had previously asked a question about the IRS’s “60 day rule”. If I understand correctly, that rule is only for an “indirect rollover” in which I would take a distribution from the 401(k) directly to myself and put it into an IRA later. But I realize I may not be understanding that correctly, and also I’m not sure if there are any other rules I’m unaware of.

Thanks!

Answer: Your understanding is 100% correct. As long as you rollover from one institution DIRECTLY into another, there is no time constraint or tax implication….unless you rollover into a Roth IRA.

Maryland Retirement Distribution Guide to 401k Rollover to