direct transfer


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 8 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 4 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 3 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
direct rollover transfer