What tax penalties will I incur during the rollover?

If you complete a Direct Rollover, there are no tax penalties. As long as the check is made out to the receiving institution "For the Benefit Of (FBO) [CLIENT NAME]", the rollover remains a non-taxable event.

Taxes and penalties may apply only if you choose to take a distribution, also known as an indirect rollover. In this case, the check is made out directly to you, and if you do not deposit it into a qualified retirement plan within 60 days, it may be considered taxable income.