Direct Transfer vs. Direct Rollover from a QP?

Answered by:

Question:

Is there ever a time money coming directly from a Qualified Employer Plan would be coded as a “direct transfer” instead of a “direct rollover”?

Answer:

NEVER! All funds coming from a Qualified Plan have to be reported on a 1099-R to the IRS – regardless of how the check is made payable. The only credit reporting that can cancel out the taxability of the transaction going into a Traditional IRA is a “Rollover” contribution credit.
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