Quote Quoting budwad
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I never heard that before. If the amount of the payout equals the amount of the roll-over, what withholding are you talking about.

A person can rollover the entire sum from one retirement account to another without withholding. He is not taking any distributions.
Bud, if he takes the money into his hands (the only reason the 60 day rule would apply) then its a distribution as far as the trustee of the original account is concerned. Which is why many of them will insist on withholding. It does not become a rollover until the person actually deposits the money into the new account. Therefore it's given a distribution code 1 on the 1099-R, for early distribution if the person is under age 59 1/2.

A trustee to trustee rollover, on the other hand, is known to the trustee of the original account to be a rollover, and therefore is given a distribution code G, for rollover, on the 1099-R