trusteetotrustee rollover is the preferred way to transfer o

trustee-to-trustee rollover is the preferred way to transfer one retirement account to another. All of these are potential when taxpayers take the distribution and handle the rollover themselves EXCEPT O The taxpayer must complete the entire rollover process within 60 days or the distribution will be taxable. O The taxpayer is subiject to a penaly i they try to do rolover from the same IRA more than once per year 0 The distribution is su ect to 20% it holding and the taxpayer must come up with this amount themselves or it will be ta able @ The taxpayer cannot claim an exception to the 10% penalty Mark for follow up

Solution

Solution: The taxpayer cannot claim an exception to the 10% penalty

Explanation: The exception from 10% penalty will depend on whether retirement plan is IRA or qualified plan. Moreover majority of pre-retirement payments that are received from a retirement plan or IRA can be “rolled over” with a deposit of the payment in another IRA or retirement plan within 60 days