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Annuity Terms Defined

Definition:

Direct Rollover

This is when an eligible qualified retirement plan or Section 403(b) distribution is moved directly from a qualified retirement plan or Section 403(b) tax-deferred annuity to an IRA or to another qualified retirement plan or Section 403(b) tax-deferred annuity. The individual's employer will not have to withhold 20% for federal income taxes from a direct rollover.


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