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Handy retirement plan rollover chart

March 15, 2010

Individual retirement accounts get extra attention this time of year since contributions for the previous tax year can be made until April 15.

In 2010, many owners of traditional IRAs also are considering whether to convert those accounts to Roth IRAs.

But moving retirement money from one plan to another is not limited to any particular time frame.

Done properly, rollovers can help you maximize your retirement dollars. Even better, they can be accomplished without costing you any added taxes or penalties.

To help you make the best moves, the IRS created this handy retirement plan rollover chart with tips on what kind of plans can be moved where.

Retirement plan rollover chart

Click on the chart (or here) for a larger version. Once there, you can use the included links to IRS publications to get more information on rolling over your retirement money.

Rollover reminders: There are two ways to complete a rollover, indirectly and directly.

With an indirect rollover, you actually get the money from your old account. But you don't get it all; 20 percent is withheld to cover taxes.

That could cause some big problems, since you're required to deposit your retirement plan's full amount, including the 20 percent that was withheld, into a new plan within 60 days. If you don't, you'll face more taxes and penalties.

So an indirect rollover means you must come up with that withheld amount to go with the rest of your retirement money in the new account.

That's why a direct, or trustee-to-trustee, rollover is better.

Not only is it faster, but since the manager of your old plan sends your retirement money to your new plan, directly and without you touching the cash, you don't lose that 20 percent off the top.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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