Eligible Rollover Distribution – Paul Gaulkin CPA

an egg inside a nest saying retirementA rollover is basically a transfer of a distribution from one tax advantaged plan to another tax advantaged plan in which the individual is able to maintain the form plan’s tax advantage with respect to the amount transferred. Distributions that may be rolled over are distributions from:

1. A qualified plan
2. A 403(b) tax sheltered annuity
3. An IRS’
4. A 457 governmental plan

Once a distribution is made from one plan to another, the taxpayer does not have to include the amount in their gross income. This effectively avoids income taxation until the amount is actual distributed to the individual.

Below is a list of plans for which individual can transfer from and into another specified plan and have the distribution be considered an eligible rollover.

Qualified Plan (Before-Tax Contributions)

A distribution from a qualified plan (before tax contributions) can be made to any of the following plans:

1. Another qualified plan
2. A 403(b) tax sheltered annuity
3. A 457 governmental plan
4. A Traditional IRA
5. A Roth IRA


Qualified Plan (After-Tax Contributions)

A distribution from a qualified plan (after tax contributions) can be made to any of the following plans:

1. A defined contribution plan
2. A traditional IRA


Eligible 457 Governmental Plan

A distribution from an eligible 457 governmental plan can be made to any of the following plans:

1. Another qualified plan
2. A 403(b) tax sheltered annuity
3. Another 457 governmental plan
4. A Traditional IRA
5. A Roth IRA


403(b) Tax Sheltered Annuity

A distribution from a 403(b) tax sheltered annuity can be made to any of the following plans:

1. Another qualified plan
2. Another 403(b) tax sheltered annuity
3. A 457 governmental plan
4. A Traditional IRA
5. A Roth IRA


403(b) Tax Sheltered Annuity (After-Tax Contributions)

A distribution from a 403(b) tax sheltered annuity (after tax contributions) can be made to any of the following plans:

1. A defined contribution plan
2. A traditional IRA


403(b) Tax Sheltered Annuity (Roth Arrangement)

A distribution from a 403(b) tax sheltered annuity (Roth arrangement) can be made to any of the following plans:

1. Another 403(b) plan that accepts Roth rollovers
2. A Roth IRA


Traditional IRA (Deductible Contributions Only)

A distribution from a traditional IRA (deductible contributions only) can be made to any of the following plans:

1. Another qualified plan
2. A 403(b) tax sheltered annuity
3. A 457 governmental plan
4. Another Traditional IRA


Traditional IRA (Non-Deductible Contributions)

A distribution from a traditional IRA (non-deductible contributions) can be made to only the following plan:

1. Another Traditional IRA


SIMPLE IRA (1st Two Years)

A distribution from a traditional IRA (1st two years) can be made to only the following plan:

1. Another SIMPLE IRA only


SIMPLE IRA (After Two Years)

A distribution from a traditional IRA (after two years) can be made to any of the following plans:

1. Another SIMPLE IRA
2. A traditional IRA
3. A Roth IRA


Roth IRA

A distribution from a Roth IRA can be made to only the following plan:

1. Another Roth IRA

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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