Indirect Rollover

Business, Legal & Accounting Glossary

Definition: Indirect Rollover


Indirect Rollover


Full Definition of Indirect Rollover


A transfer method when assets are transferred from a qualified plan (e.g. 401k, 403b or 457b) to an individual retirement account (IRA). The funds are given directly to the individual, who then has full use of the funds for 60 days, after which the funds must be deposited into the IRA to avoid income tax liability. An indirect rollover is always subject to a 20% withholding rate, unlike a direct rollover which is reportable, but not taxable.


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Indirect Rollover. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
October 05, 2022 https://payrollheaven.com/define/indirect-rollover/.
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Indirect Rollover. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/indirect-rollover/ (accessed: October 05, 2022).
American Psychological Association (APA):
Indirect Rollover. PayrollHeaven.com. Retrieved October 05, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/indirect-rollover/

Definition Sources


Definitions for Indirect Rollover are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.