Definitions for "Direct transfer"
The movement of a tax-deferred retirement assets from one plan or custodian directly to another. A direct transfer is not a withdrawal and does not incur any taxes or penalties. see also transfer.
a tax-free transfer of qualified funds from one custodian to another custodian. xclusion Ratio: the ratio of the tax excludable portion of an annuity payment to the total annuity payment (always non-qualified funds only). ixed Annuity: an annuity contract with a guaranteed and projected rate of interest; a current life insurance license is all that is required to sell a fixed annuity.
Occurs when the taxable portion of a retirement account is paid directly to another qualified plan or IRA. A direct transfer is not subject to tax withholding.