IRAs From Start to Finish - Part 2: Rollovers and Transfers

Date:

Sep 12, 2024

So you think you know the difference between an IRA Rollover vs. IRA Transfer vs. QP Direct and Indirect Rollover? The “rollover” and “transfer” words are two of the most misused and abused terms in the IRA world. Not knowing the difference leads to misreporting to the IRS - which can result in unnecessary letters and bills to the customers.

Many people think the Rollover/Transfer issue is no big deal. It can’t be stressed enough how big a deal it really is.

It’s not rocket science, but you can’t make up your own definition of a rollover or transfer. If you don't understand the difference, you won’t use the correct transaction description. That would result in incorrect reporting to the IRS and not matching what the customer is saying on their tax return.

The most important ingredient of rollovers and transfers is that both the sending and receiving institutions must match in their reporting to cancel out the taxation of the transaction. This session will include several Quick Reference charts for guidelines on the differences.