by Donn J. Sinclair , MBA Personal Financial Advisor August 1, 2022
Your retirement plans should portable; as well as, tax-favored investments. Normally, you should be able to transfer assets directly from one trustee to another; an indirect or direct IRA Rollover; or process transfers incident to a divorce. You may also want to consider possible tax advantages of moving some of these retirement plan assets to your Roth IRA. Your personal tax advisor should be able to help you in this area.
Trustee-to-Trustee Transfers send your retirement assets directly from one like-type account to another. Moving funds from a former 401(k) to your new 401(k), is an example of a Trustee-to-Trustee Transfer. Normally you can also move Traditional IRA funds via a Trustee-to-Trustee Transfer from one IRA to another like-kind IRA. This is a very convenient way to move funds between IRAs and other retirement accounts. Your current trustee may actually U.S. Mail you the check; however, the check is normally payable to your new trustee for your benefit. Upon receipt of such a check, you then should immediately deliver or send that check to your new trustee.
