A direct rollover is the direct movement of all or some portion of a participant’s interest in a plan from the custodian, insurer or trustee holding the participant’s account to the custodian, insurer or trustee of another eligible retirement plan into which the participant wishes to have their account deposited. The participant does not receive the distribution and the amount is directly deposited into their new account under the new plan as a “direct rollover” contribution.
Editor’s Note: This is an occasional feature in the NTSA Advisor. This tip is taken from the 403(b) Plan Sponsor Guide, which is being made available to school districts nationally to assist them in understanding how to improve 403(b) plan participation and savings rates to help employees achieve a comfortable and timely retirement.
The 403(b) Plan Sponsor Guide is part of the content contained in the NTSA Certified Retirement Education Specialist (CRES) materials. The NTSA Certified Retirement Education Specialist (CRES) program and designation has been developed in order to equip advisors to be qualified and available to teach the NTSA educational program, which is designed to provide teachers with the basics of planning for retirement and improve their retirement readiness. More information about CRES is available here.
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