Rollover
Learn about 401(k) rollover options when changing jobs or retiring. Understand direct vs. indirect rollovers, IRA transfers, and how to avoid penalties and t...
What happens if I don't roll over my 401(k) within 60 days?
If you miss the 60-day deadline for an indirect rollover, the IRS treats your withdrawal as a taxable distribution. You'll owe income tax on the entire amount, plus a 10% early withdrawal penalty if you're under 59½. The only way to avoid this is by completing a direct rollover, where funds transfer directly between accounts without the 60-day rule applying. This is why most financial experts suggest direct rollovers over indirect ones.
