What is a direct rollover, and how does it differ from an indirect rollover?

A direct rollover is when your retirement money moves straight from one account to another — like from your Paychex 401(k) to an IRA — and you never touch the money. It’s clean, no taxes are taken out, and there’s no risk of penalties.
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An indirect rollover is when the money gets sent to you first, and then you have 60 days to put it into a new retirement account. If you don’t roll over the full amount in time, you could get hit with taxes and penalties.