An employee quits her job where she has a balance of $10,000 in her qualified plan. if she decides to do a direct transfer from her plan to a traditional ira, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

Question

Business

Strong

20 August, 15:24

An employee quits her job where she has a balance of $10,000 in her qualified plan. if she decides to do a direct transfer from her plan to a traditional ira, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

+2

Answers (1)

Know the Answer?

Tucker Morales · Answer 1

After an employee quits their job they can choose to keep their money in their qualified plan. If they choose to transfer the whole balance to a traditional IRA they have 30 days to do so with no tax penalty.