What Is A Trustee-To-Trustee Transfer?

 “Trustee” is a legal term, for the purposes of investing, that identifies an institution or 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. Trustees or custodians are generally not retirement distribution specialists and may not be able to properly inform you of your options or tax liabilities!