- Required distributions and non-spousal death benefits can’t be rolled over.
- Required distributions, certain periodic payments, hardship distributions, corrective distributions, and certain other payments can’t be rolled over. Spouse beneficiaries generally have the same rollover rights as the plan participant, and in addition may roll over Roth 401(k) and 403(b) funds to an inherited Roth IRA. Nonspouse beneficiaries may roll over distributions from Roth 401(k) and 403(b) accounts only to an inherited Roth IRA and only in a direct rollover.
- May result in loss of lump sum averaging and capital gain treatment.
- Direct (trustee-to-trustee) rollover only; time held in distributing plan counts toward 5-year holding period for qualified distributions from receiving plan.
- Time held in Roth 401(k)/403(b) account does not count toward Roth IRA 5-year holding period for qualified distributions.
- Time held in distributing plan counts toward 5-year holding period for qualified distributions from receiving plan only if direct (trustee-to-trustee) rollover.
- 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.
NOTE: Plans are not legally required to accept rollovers. Review your plan document.