If you don’t roll over your payment, it will be taxable (other than qualified Roth distributions and any amounts already taxed) and you may also be subject to additional tax unless you’re eligible for one of the exceptions to the 10% additional tax on early distributions. By rolling over, you’re saving for your future and your money continues to grow tax-deferred. When you roll over a retirement plan distribution, you generally don’t pay tax on it until you withdraw it from the new plan. The Rollover Chart PDF summarizes allowable rollover transactions. You can also have your financial institution or plan directly transfer the payment to another plan or IRA. Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by depositing the payment in another retirement plan or IRA within 60 days. Information on this page may be affected by coronavirus relief for retirement plans and IRAs. COVID-19 Relief for Retirement Plans and IRAs
