Final answer:
An investor may roll over distributions from qualified retirement plans such as 401(k)s into IRAs without incurring taxes but with certain conditions.
Step-by-step explanation:
An investor may also roll over distributions from qualified retirement plans such as 401(k)s into IRAs without incurring taxes but with certain conditions.
One condition is that the rollover must be completed within 60 days of receiving the distribution from the retirement plan. If not completed within this time frame, the distribution will be treated as taxable income and potentially subject to early withdrawal penalties for those under the age of 59 1/2.
Another condition is that the rollover must be a direct rollover from the retirement plan to the IRA, meaning the funds are transferred directly from one account to another.