Trustee-to-Trustee Transfers
They involve the direct movement of funds from one retirement account custodian (or trustee) to another, with the funds never passing through your hands.
The main benefit of a trustee-to-trustee transfer is its logistical simplicity (at least for you). This shows up in three ways
- Trustee-to-trustee transfers are not reportable events for tax purposes, so a 1099-R (which is used to report distributions from retirement accounts) isn't issued. This is one less thing to deal with at tax time.
