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The 60-day rollover rule is one of the many traps that lie in wait for investors rolling over a retirement account such as a 401(k) or IRA. You have to follow the rules exactly, or you could end ...
Remember, the IRS’s 60-day rule states that if you choose an indirect rollover, you have 60 days to deposit the funds into a new retirement account to avoid taxes and penalties.
Keep in mind the 60-day rollover rule for indirect rollovers. Any amount not deposited into a new retirement account within 60 days is considered taxable income and should be reported on line 4b.
A 401(k) rollover is when you direct the transfer of the money in your 401(k) plan to a new 401(k) plan or IRA. The IRS gives you 60 days from the date you receive an IRA or retirement plan ...
An indirect rollover requires you to cash out your 401(k) and deposit the funds into your IRA within 60 days. If you miss the deadline, you’ll get hit with “a massive tax bill and lots of ...
Instead of cashing out the plan and paying a $4,000 penalty, you initiate a direct rollover to your new employer-sponsored 401(k) plan. ... Abiding by the 60-day rule is essential, as you avoid ...
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