Before you get too
deep into
some of the complexities, let's make sure you have a good understanding
of some basic terminology and rules regarding a 401k rollover.
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Direct
Rollover
The most efficient means for accomplishing a 401k rollover. Your former
employer transfers your reitrement funds directly to a rollover IRA
provider or your new employer plan. Doing this avoids any early
distribution penalties and federal tax withholding. Deciding
which direct rollover option is best for you is a topic on the advanced
answers tab.
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