Outgoing IRA rollovers and transfers

ARTICLE TAKEAWAYS

  • Differences between a rollover and a transfer of assets
  • One IRA-to-IRA rollover per owner is allowed per consecutive-12-month period
  • Steps to take to move funds out of your Capital Bank and Trust Company (CB&T) IRA

Rollover and transfer of assets comparison

A rollover and a transfer of assets are both ways to move money from one retirement account to another. The types of accounts involved, and whether you take possession of the assets, determine the type of move and tax reporting. 

This table compares the differences between the types of moves.

Type of move

Process

Internal Revenue Service (IRS) tax reporting

Direct rollover*

The assets are distributed from a retirement plan, and the rollover distribution is paid directly to another IRA or retirement plan.

Rollovers are generally tax reportable but are not taxable. Form 1099-R is mailed by the sending firm the following year, and Form 5498 is mailed by the receiving firm after the tax-filing deadline.

Consult a tax advisor for more information.

Indirect rollover*

Assets are distributed and paid directly to you, as the account owner. 

For the money to be treated as a rollover, you must reinvest all or part of the distribution into the receiving IRA or retirement account within 60 days of receipt. 

Rollovers are generally tax reportable but are not taxable. Form 1099-R is mailed by the sending firm the following year, and Form 5498 is mailed by the receiving firm after the tax-filing deadline.

Consult a tax advisor for more information.

Transfer of assets

Assets are distributed from one IRA and sent directly to another IRA.

None


* Only one IRA-to-IRA rollover per owner is allowed per consecutive-12-month period (beginning on the date the distribution is received), regardless of the number of IRAs owned. The one-rollover-per-12-month-period limit does not apply to rollovers from traditional IRAs to Roth IRAs (conversions) or to rollovers from IRAs to employer-sponsored retirement plans.

Type of move from your CB&T IRA

This table identifies the type of move(s) allowed, based on the receiving account type.

For assets moved out of a traditional IRA:

If the receiving account is a:

The type of move is a:

401(k), 403(b) or 457(b)

Rollover (indirect or direct)1,2

Roth IRA

Conversion3

Traditional IRA, SIMPLE IRA or SEP IRA/SARSEP

Transfer of assets, rollover (direct or indirect)

1 These plans are not required to accept IRA rollovers. Check with the receiving plan to confirm that the IRA rollover will be accepted.

2 Only pre-tax contributions in the IRA can roll over into a qualified plan. After-tax contributions must remain in the IRA.

3 Talk to your financial professional or tax advisor for additional details on IRA conversions.

For assets moved out of a Roth IRA:

If the receiving account is a:

The type of move is a:

Roth IRA

Transfer of assets or rollover (direct or indirect)

How to move assets from your CB&T IRA

  1. Complete the IRA Rollover/Transfer Request (PDF). 
  2. The request should be mailed to the closest service center. 
  3. Once the request is received with all required information, the distribution is processed with a check made payable to the new trustee for the benefit of you and is mailed the next business day.
  4. Capital Group will report the distribution on Form 1099-R, available in late January. The receiving institution is responsible for reporting the rollover contribution on Form 5498.
     

A signature guarantee is required for requests over $250,000. Review our signature guarantee guidelines for additional details.

  1. You can log in to your account and withdraw all or a portion of the funds to be sent to your address on file or to a bank account on file. Distributions can also be requested by completing the IRA Single Distribution Request (PDF) and returning the form online or by mail. 
  2. To avoid possible tax implications, the assets must be reinvested into a retirement account at the new institution within 60 days of receipt.
  3. Capital Group will report the distribution on Form 1099-R, available in late January. The receiving institution is responsible for reporting the rollover contribution on Form 5498.


A signature guarantee is required for requests over $250,000. Review our signature guarantee guidelines for additional details.

  1. Contact the receiving firm to complete its transfer of asset paperwork. This must be signed by the account owner and receiving firm’s new trustee. 
  2. The request should be mailed to the closest service center. 
  3. Once a request is received with all required information, the distribution is processed with a check made payable to the new trustee for the benefit of you and is mailed the next business day.
  4. Transfers of assets are not tax reportable and do not generate tax forms.
     

A signature guarantee is required for requests over $250,000. Review our signature guarantee guidelines for additional details.

You may generally reinvest all or part of an IRA distribution back into the same account type as a rollover within 60 calendar days of the date of receipt without a sales charge.

  1. Mail an investment check to the closest service center. You must include instructions and indicate the investment is a rollover.
  2. Once a request is received with all required information, the contribution is processed as a rollover contribution.
  3. Capital Group will report the original distribution on Form 1099-R, available in late January, and the rollover contribution on Form 5498, available in late May.
     

Investors may reinvest a distribution without paying a sales charge within 90 days. For more information, review the right of reinvestment policy in Reducing sales charges on Class A, 529-A and ABLE-A shares.

Reinvestments made after the 60 calendar days are considered personal contributions and are subject to IRA contribution limits and deadlines.

Note: Reinvesting an IRA distribution as a rollover is considered an IRA-to-IRA rollover under the IRS’s allowance of one per owner per consecutive-12-month period.

Related content

IRA Rollover/Transfer Request (PDF)
Signature guarantees
Traditional and Roth IRA tax FAQ
Closing your account

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