Eligible Rollover Distribution


Also found in: Acronyms.

Eligible Rollover Distribution

The amount of money in an IRA or other qualified retirement plan that may be rolled over into another plan. Rollovers occur most often when a person changes employers; they may occur without penalty once per year.
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The downside of an eligible rollover distribution paid directly to the participant is the 20% federal income tax withholding.
An eligible rollover distribution is defined as any distribution made to an employee of all or any portion of the balance to the credit of the employee in a qualified trust, except that the term does not include (1) any distribution that is part of a series of substantially equal payments (at least annually) made over the life expectancy of the employee or the joint life expectancies of the employee and his designated beneficiary, (2) any distribution made for a specified period of 10 years or more, (3) any distribution that is a required minimum distribution under IRC Section 401(a)(9), and (4) any hardship distribution.
408A to allow the recipient of an eligible rollover distribution not made from a designated Roth account to roll over the amount of the distribution to a Roth IRA without first contributing that amount to a non-Roth IRA.
An eligible rollover distribution means any distribution to a participant of any portion of the balance to the credit of the participant in a tax-qualified retirement plan [or IRC section 403(b) tax sheltered annuity], with the exception of -
In general, if an eligible rollover distribution is paid directly to the taxpayer, the payer must withhold 20%; this applies even if the taxpayer intends to roll over the distribution to an IRA.
If a Roth 401 (k) makes an eligible rollover distribution directly to the employee, he or she could use the 60-day rollover option to transfer all or part of the distribution amount to a Roth IRA.
402(c)(1), which excludes from taxation amounts paid to an IRA from a qualified plan in an eligible rollover distribution made within 60 days of receipt.
402(c): An eligible rollover distribution from a qualified trust that is rolled over to an eligible retirement plan is not includible in gross income for the tax year paid.
A SESOP that holds S stock and permits distributions of employer securities must permit participants to elect to have any eligible rollover distribution of S stock be paid directly to an eligible retirement plan, including an IRA.
402(c)(1), any portion of an eligible rollover distribution from a qualified Sec.
Qualified plans (including ESOPs) permit participants receiving an eligible rollover distribution to roll it over directly to an eligible retirement plan, including an IRA.
401(a) plan to allow participants to elect to have an eligible rollover distribution paid directly to an eligible retirement plan specified by the participant.