A: If you have not already requested a rollover, let your current plan provider know that you want to do a direct rollover.
An indirect rollover involves a distribution from your 401(k) where your funds are distributed to you, rather than to a new retirement account. You may have requested the rollover without knowing where you'd like to direct the funds. Indirect rollovers are a little more tricky because they're subject to withholding equal to 20% of the 401(k) distribution amount. Additionally, any retirement funds distributed to you that are not rolled over into a new retirement account within 60 days are considered to be a cash withdrawal and are subject to income tax, plus a possible 10% penalty if you’re younger than age 59 ½.