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What is the difference between a rollover and a transfer?

A rollover typically refers to the process of “rolling over” a 401(k) into an IRA. Your 401(k) administrator writes a check for the balance of your 401(k), which you can then deposit (“roll over”) into an IRA. Read more about rollovers here.

A transfer typically refers to an electronic transfer of an IRA or taxable investment account from one institution to another. Read more about transfers here.

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This article is not intended as tax advice, and Wealthfront does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. Wealthfront assumes no responsibility for the tax consequences to any investor of any transaction. Investors and their personal tax advisors are responsible for how the transactions in an account are reported to the IRS or any other taxing authority.

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