14 Rollover Tax Facts to Know

Related: 14 Annuity Tax Facts to Know

A rollover or rollover contribution is the transfer of a distribution from a qualified plan, a Section 403(b) tax-sheltered annuity, an individual retirement account (IRA) or an eligible Section 457 governmental plan.

Distributions that are rolled over according to applicable tax rules and regulations are not included in gross income until receipt at some time in the future. A rollover to a Roth IRA, though, generally is a taxable event.

These are just two aspects of rollovers advisors must consider when acting as a fiduciary for their clients.

In the gallery above are 14 important tax and financial planning questions advisors should be aware of regarding rollovers, according to ALM’s Tax Facts Online.

(Graphics: Chris Nicholls/ALM)

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14 Rollover Tax Facts to Know

Related: 14 Annuity Tax Facts to Know

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1. What is a charitable IRA rollover or qualified charitable distribution?

2. May an individual who has turned 70½ make a rollover?

3. Can a required minimum distribution (RMD) from an IRA be rolled over into another account?

4. May a surviving spouse make a rollover contribution?

5. May a surviving non-spouse beneficiary make a rollover contribution?

6. May a recipient of a distribution roll over the amount into another person’s individual retirement plan?

7. May an individual who is not a participant in a qualified plan roll over amounts received from the plan because of a divorce or separation agreement?

8. What new rules apply to allow a taxpayer to roll over pretax and after-tax contributions in a qualified plan into separate accounts in a single distribution?

9. Must a participant receiving an eligible rollover distribution have the option of making a direct rollover to another qualified plan?

10. What notice requirements must a plan satisfy if it is subject to the direct rollover rules?

11. May a participant who receives a distribution of an annuity from a qualified pension or profit-sharing plan surrender the annuity and roll over the proceeds?

12. When may rollover contributions be made from an IRA to a tax-sheltered annuity?

13. When may rollover contributions be made from an IRA to a 457 plan?

14. May a taxpayer roll over amounts from a defined contribution plan into a defined benefit plan? What special rules apply to the rolled-over funds?

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14 Rollover Tax Facts to Know

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Related: 14 Annuity Tax Facts to Know

More on this topic

1. What is a charitable IRA rollover or qualified charitable distribution?

2. May an individual who has turned 70½ make a rollover?

3. Can a required minimum distribution (RMD) from an IRA be rolled over into another account?

4. May a surviving spouse make a rollover contribution?

5. May a surviving non-spouse beneficiary make a rollover contribution?

6. May a recipient of a distribution roll over the amount into another person’s individual retirement plan?

7. May an individual who is not a participant in a qualified plan roll over amounts received from the plan because of a divorce or separation agreement?

8. What new rules apply to allow a taxpayer to roll over pretax and after-tax contributions in a qualified plan into separate accounts in a single distribution?

9. Must a participant receiving an eligible rollover distribution have the option of making a direct rollover to another qualified plan?

10. What notice requirements must a plan satisfy if it is subject to the direct rollover rules?

11. May a participant who receives a distribution of an annuity from a qualified pension or profit-sharing plan surrender the annuity and roll over the proceeds?

12. When may rollover contributions be made from an IRA to a tax-sheltered annuity?

13. When may rollover contributions be made from an IRA to a 457 plan?

14. May a taxpayer roll over amounts from a defined contribution plan into a defined benefit plan? What special rules apply to the rolled-over funds?

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