An indirect rollover is when a check is paid to you. When you receive the check, you cash it and deposit the funds in the new IRA within 60 days. Before releasing your plan funds to you, the plan administrator is required to withhold 20 percent of the taxable amount for federal income tax. To make sure you deposit the correct amount, you must replace this 20 percent out of your own pocket.

Answered by Admin - 11 months ago