Transfers, Rollovers, and Distribution Strategies

What this video covers

• Why a direct trustee-to-trustee transfer has no mandatory tax withholding and no frequency limit, while a 60-day indirect rollover from a qualified plan triggers 20% withholding
• How a participant must replace the 20% withheld amount out of pocket within 60 days to complete a full rollover from a qualified plan
• The once-per-year rule: it applies only to 60-day IRA-to-IRA rollovers, not to direct trustee-to-trustee transfers or qualified-plan-to-IRA rollovers
• Why required minimum distributions (RMDs) are never rollover-eligible; only amounts distributed above the RMD can be rolled over
• Which investments are permitted in individual retirement accounts (IRAs), simplified employee pensions (SEPs), and savings incentive match plans for employees (SIMPLEs), and which trigger a deemed distribution
• Why all traditional retirement distributions are taxed as ordinary income, never as capital gains, regardless of how long the underlying asset was held
• The three critical ages: 59-1/2 (early withdrawal penalty exception), 73 (required beginning date for RMDs), and the SECURE Act 10-year emptying rule for inherited IRAs