direct transfer

Definition

The movement of tax-deferred retirement assets from one plan or custodian directly to another. A direct transfer is not a withdrawal and does not incur any taxes or penalties. This allows a person to move his/her retirement assets as many times as he/she wants to plans or custodians that might be more suitable for him/her at that point in time.

Use direct transfer in a sentence

After he left the company he was able to move his old 401k to the new company through a direct transfer.

​ Was this Helpful? YES  NO 12 people found this helpful.

We should have no delay in moving the funds, with direct transfer included in our business account this feature comes in handy.

​ Was this Helpful? YES  NO 10 people found this helpful.

A type of transfer which involves movement of tax deferred retirement assets from one plan and then directing it to another plan is known as direct transfer

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
transfer direct rollover