An indirect rollover is a transfer of money from a tax-deferred 401(k) plan to another tax-deferred retirement account. ... In an indirect rollover, the funds are given to the employee via check for deposit to a personal account.

What is indirect rollover?

With an indirect rollover, you take possession of funds from one retirement account and personally reinvest the money into another retirement account—or back into the same one. The 60-day rollover rule says you must reinvest the money within 60 days to avoid taxes and penalties.

How is an indirect rollover reported?

Reporting your rollover is relatively quick and easy – all you need is your 1099-R and 1040 forms. Look for Form 1099-R in the mail from your plan administrator at the end of the year. Your rollover is reported as a distribution, even when it is rolled over into another eligible retirement account.