In a direct transfer from one qualified retirement plan to another qualified retirement plan, the employer does not have to withhold 20% of the amount of the direct transfer.

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In a direct transfer from one qualified retirement plan to another qualified retirement plan, the employer does not have to withhold 20% of the amount of the direct transfer. This is because the amount is directly transferred from one account to another without the individual ever actually receiving the money in hand.

In a Direct Transfer from One Qualified Retirement Plan to Another