“Trustee” is a legal
term that identifies an individual, an institution or a financial services entity
that holds other people’s money. Employers, banks, brokerage houses and
insurance companies can all be trustees. Account holders who seek to move money
from one institution to another can elect to do so without taking physical possession
of their money. That is, a paper check is never cut for the funds — they simply
direct the transfer of their money electronically to a different retirement account.
That process is called a trustee-to-trustee transfer.
Using trustee-to-trustee transfers will ensure that your time
limit is met on rollovers. Missing the 60-day rollover deadline can disqualify
the funds, sabotage the rollover and subject your entire retirement savings to
immediate, needless and heavy taxation, destroying the opportunity of
“stretching” your distribution over your life and the lives of your heirs. Your
retirement distribution specialist will gladly explain to you how
trustee-to-trustee transfers can help avoid tax penalties.
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