Skip Navigation Download Adobe Acrobat Reader 5.0 or higher to view PDFs.
Man looking out a brightly lit window

Financial Learning Center


Distributions from Your 401(k) at Retirement

Rollover to another Retirement Plan

The law lets you delay paying taxes by allowing your 401(k) plan money to be rolled over into another company's retirement plan, e.g., a 401(k) plan, if you are still working. A rollover must generally be completed within 60 days of when the distribution was received. It is usually wise to roll over your distribution because you are deferring taxes on your former 401(k) contributions and you continue to delay paying taxes on the amount it earns as well.

Direct Rollover to a Traditional IRA or Other Retirement Plan Avoids the 20% Withholding Tax

If you roll over your 401(k) distribution directly to a traditional IRA or other retirement plan, you pay no taxes on the money at that time, and you are not subject to the 20% withholding requirement. This can be accomplished by completing the appropriate plan documentation and establishing a qualified IRA account. You never touch the money or get involved with the transfer. This is called a "direct rollover."

Share Article:
Add to GooglePlus

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window).  UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


BrokerCheck