Transfers and Exchanges

You can only transfer or exchange funds if all Plans involved allow this type of distribution. These may be done without paying income tax or being subject to a tax penalty, as long as you follow some simple rules. Read more below about making sure your distribution is without tax penalty.

Plan-to-Plan Transfers

If allowed by both Plans, you may move your balance from a former employer’s Plan to your current employer’s Plan. With a plan-to-plan transfer, money is moved directly between Plans and is never distributed to you. This helps ensure a non-taxable transaction and requires a qualifying distribution event.

Rollovers

If allowed by both Plans, you may roll over funds from a former employer’s retirement account into your new employer’s Plan. Unlike a plan-to-plan transfer, money is distributed to you. You then have to deposit the balance into your new Plan within a set period of time to ensure a non-taxable transaction.This transaction requires a qualifying distribution event.

Plan Exchanges

If allowed by the Plan, you can move money between:

  • Investments with the same provider
  • Two approved vendors of the Plan

This is a non-taxable transaction and does not require a qualifying distribution event.

 



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