20% hold back on Rollover | Ed Slott and Company, LLC

20% hold back on Rollover

Had an advisor tell me yesterday that i can actually complete a ROLLOVER in 7 days by writing a letter stating that i want a check sent to me from my company 401k account, for a "ROLLOVER", and just tell them - do NOT with-hold any taxes, (as i have read they will hold 20% when the check is sent to me). And with this letter, on a ROLLOVER, NOT a transfer, they will send me a check WITHOUT holding the 20%. that i can just RE-Deposit. Any truth to this?

Rollover from what? One can opt out of w/h from an IRA, but not from a QRP. That is why a DIRECT rollover (trustee-to-trustee transfer) is urged if one is going from a QRP to an IRA. The check may still come to you, but made out to the IRA custodian. Al

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