Frequently asked questions

What happens if I don’t make any election regarding my retirement plan distribution?

  • The plan administrator must give you a written explanation of your rollover options for the distribution, including your right to have the distribution transferred directly to another retirement plan or to an IRA.
  • If you’re no longer employed by the employer maintaining your retirement plan and your plan account is between $1,000 and $5,000, the plan administrator may deposit the money into an IRA in your name if you don’t elect to receive the money or roll it over. If your plan account is $1,000 or less, the plan administrator may pay it to you, less, in most cases, 20 percent income tax withholding, without your consent. You can still roll over the distribution within 60 days.

Is my retirement plan required to allow transfer of any amounts eligible for a distribution?

  • If you receive an eligible rollover distribution from your plan of $200 or more, your plan administrator must provide you with a notice informing you of your rights to roll over or transfer the distribution and must facilitate a direct transfer to another plan or IRA.

Is my retirement plan required to accept rollover contributions?

  • Your retirement plan is not required to accept rollover contributions. Check with your new plan administrator to find out if they are allowed and, if so, what type of contributions are accepted.

Source: IRS, March, 2018

For Educational Purposes Only.

Information about IRA rollovers is intended to be educational only. It is not tailored to the investment needs of any specific investor.  This information should not be considered tax or legal advice.

IRA rollovers are subject to complex tax laws and regulations which are subject to change and which can materially affect investment results. Westwood cannot guarantee that this information is accurate, complete, or timely. Westwood makes no warranties regarding this information or results obtained by using it. Westwood disclaims any liability arising out of the use of, or any tax position taken in reliance on, this information. Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.

At Westwood WealthCoach, we are on a mission to level the playing field for all investors. We believe everyone deserves their own personal WealthCoach advisor - someone who can provide advice and help manage their finances. Westwood WealthCoach is a digital wealth advisory platform that combines both human advice and technology to help individuals and families achieve their goals in life. We look forward to sharing our investment experience to help you get where you want to go. Our parent company, Westwood Holdings Group, offers investment advisory services through Westwood Advisors, LLC, a wholly owned subsidiary of Westwood Holdings Group, Inc. (NYSE: WHG)