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Nordson Employees: IRA Transfers vs. Rollovers—The Retirement Rules That Can Help You Avoid Costly Mistakes
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'For Nordson employees, understanding the difference between an IRA transfer and an IRA rollover can help reduce avoidable mistakes and keep retirement planning on track, making it worthwhile to review these decisions with a financial professional before moving retirement assets.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.
'Nordson employees who understand the rules surrounding IRA transfers and rollovers are often better positioned to make informed retirement planning decisions and reduce the likelihood of unnecessary complications when moving retirement assets.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
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The difference between IRA transfers and IRA rollovers, and why the distinction matters.
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The IRS one-per-12-month IRA rollover rule, including key exceptions and common mistakes that can lead to tax consequences.
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Practical strategies to help Nordson employees move retirement assets while reducing the likelihood of taxes and penalties.
There are several reasons why investors relocate their IRAs. They might wish to merge multiple IRA accounts, work with a different financial advisor, or switch financial institutions. For Nordson employees preparing for retirement or managing retirement savings alongside workplace benefits, it is important to understand the regulations governing IRA transfers and rollovers to preserve the tax-deferred status of retirement assets. Although many investors believe they can transfer IRA assets as frequently as they like, the regulations vary depending on the approach taken. For instance, trustee-to-trustee transfers are exempt from the 12-month limit, whereas IRA-to-IRA rollovers can only be completed once.
Knowing the distinction between a transfer and a rollover can help reduce the chance of costly mistakes if you intend to move your IRA, especially when coordinating retirement assets with benefits earned during your career at a Nordson company.
Rollover vs. IRA Transfer
After obtaining permission from the IRA owner, the receiving financial institution usually arranges the movement of assets through a trustee-to-trustee transfer. For Nordson employees, the assets are deposited directly into the same type of IRA as a nonreportable transaction when the receiving institution instructs the distributing institution.
The transfer is not reported on the IRA owner's tax return or to the IRS because the assets move directly between financial institutions. This makes trustee-to-trustee transfers a straightforward option for many Nordson retirees.
It is possible to move money between two Roth IRAs and between two traditional IRAs, including SEP and SIMPLE IRAs. However, before the SIMPLE IRA has completed its two-year participation period, it cannot be transferred to a traditional IRA (or vice versa). When the initial SIMPLE IRA contribution is made, this two-year period begins. Transfers and rollovers involving SIMPLE IRAs are generally restricted during that time, making it important for Nordson employees to understand the applicable rules before moving retirement assets.
When an IRA-to-IRA rollover occurs, the IRA owner receives a distribution and redeposits the funds into either the same IRA or another IRA. For Nordson employees, after receiving the distribution, the rollover generally must be completed within 60 days.
Form 1099-R reports the distribution to both the IRS and the IRA owner, while Form 5498 reports the rollover contribution. In addition, the taxpayer's tax return should accurately reflect both transactions, an important consideration for Nordson retirees.
The IRA One-Per-12-Month Rollover Rule
The number of trustee-to-trustee transfers between IRAs is unlimited. IRA-to-IRA rollovers, however, are generally limited to one every 12 months, a rule every Nordson employee should understand before initiating a rollover.
For example, a person cannot complete another IRA-to-IRA rollover within the following 12 months if they take a distribution from a traditional IRA and roll it into the same or another traditional IRA. For purposes of the one-per-12-month restriction, all of a person's traditional, Roth, SEP, and SIMPLE IRAs are considered together because the rule applies on an individual basis.
Example 1: In May 2026, Mary receives a distribution from traditional IRA number one and rolls it into traditional IRA number two in June of the same year. Mary cannot complete another IRA-to-IRA rollover for any of her IRAs during the following 12 months. This same rule applies whether or not someone is employed by a Nordson company.
All IRA types are subject to this restriction. Mary also cannot complete a Roth IRA-to-Roth IRA rollover during the same 12-month period after completing the traditional IRA rollover.
Example 2: In August 2026, Lupita receives a $25,000 distribution from her traditional IRA, which she rolls into another traditional IRA within 60 days.
Six months later, Lupita withdraws $10,000 from her Roth IRA with the intention of rolling it into another Roth IRA within 60 days. The second rollover is not permitted because she has already completed a traditional IRA-to-IRA rollover. All of her IRAs are subject to the one-per-12-month rollover rule. She must wait until the 12-month period that began with the August distribution has ended before completing another IRA-to-IRA rollover. This is an important rule for Nordson employees to remember.
The one-per-12-month restriction would not have applied if Lupita had completed the traditional IRA transaction using a trustee-to-trustee transfer instead of a rollover.
Roth Conversions and Employer Plan Rollovers Are Exempt from the Rule
The one-per-12-month rollover limit does not apply to Roth conversions or rollovers to or from employer-sponsored retirement plans. These exceptions may provide additional options for Nordson employees who discover that a second IRA-to-IRA rollover would exceed the one-per-12-month limit.
For example, Jack successfully rolls a distribution from traditional IRA number one into traditional IRA number two. A few months later, Jack wants to move another distribution from traditional IRA number two into traditional IRA number three. Before doing so, he learns that the second rollover would exceed the one-per-12-month IRA rollover limit.
Fortunately, Jack participates in a 401(k) plan that accepts rollover contributions from traditional IRAs. This may also be an option available to some Nordson employees depending on their retirement planning strategy.
Jack rolls the distribution into his 401(k) instead of another IRA. Rollovers from IRAs into employer-sponsored retirement plans are permitted because they are exempt from the one-per-12-month restriction.
Generally, only the pre-tax (taxable) portion of a traditional IRA may be rolled into a qualified employer-sponsored retirement plan. Nondeductible (after-tax) basis generally cannot be rolled into the plan, something Nordson employees should remember when evaluating rollover options.
If Jack does not have access to an employer-sponsored retirement plan, another option may be to complete a Roth conversion. The one-per-12-month rollover restriction does not apply to Roth conversions.
In most cases, a Roth conversion creates taxable income. However, it allows assets to continue growing in a Roth IRA, where future qualified withdrawals may be tax-free. This may be a topic worth discussing with a financial professional if you are a Nordson employee approaching retirement.
How to Reduce Issues with IRA-to-IRA Rollovers
Whenever possible, consider using the trustee-to-trustee transfer method instead of the rollover method when moving assets between IRAs. Trustee-to-trustee transfers are exempt from the one-per-12-month rollover restriction, the 60-day deadline, and IRS reporting requirements, making them an attractive option for many Nordson employees.
In certain situations, a rollover may still be appropriate. For example, an IRA owner may need temporary access to the funds and intend to redeposit them within 60 days. In those situations, the one-per-12-month IRA-to-IRA rollover rule should be followed carefully. An error could result in an invalid rollover and cause what was intended to be a tax-free movement of retirement assets to become a taxable distribution.
Before initiating a rollover, speak with your financial professional or tax professional to determine whether the transaction qualifies for rollover treatment and whether another approach, such as a trustee-to-trustee transfer, may be a better fit. This is especially valuable for Nordson employees coordinating IRA decisions with their overall retirement strategy.
Help with Retirement Planning
Understanding the rules governing IRA transfers and rollovers is an important part of managing retirement assets and reducing the likelihood of unnecessary taxes or penalties. Whether you're still working or preparing to retire from a Nordson company, understanding these rules can help you make more informed decisions. The Retirement Group can help you evaluate your retirement planning options and answer questions about your retirement strategy. Call (800) 900-5867 to speak with a retirement professional.
Sources:
1. Internal Revenue Service. Individual Retirement Arrangements (IRAs): Contributions (Publication 590-A). U.S. Department of the Treasury, 2025, https://www.irs.gov/publications/p590a .
2. Charles Schwab & Co., Inc. IRA Rollover Rules: What Investors Need to Know. Charles Schwab, https://www.schwab.com/ira/rollover-ira .
3. Fidelity Investments. IRA Rollovers: Rules, Options and Considerations. Fidelity Investments, https://www.fidelity.com/retirement-ira/401k-rollover-options .
4. Financial Industry Regulatory Authority (FINRA). Rollovers of Retirement Plan and IRA Assets. FINRA Investor Education Foundation, https://www.finra.org/investors/insights/rollover-retirement-plan-assets .
5. U.S. Securities and Exchange Commission. Investor Bulletin: Rolling Over Assets from Your Employer-Sponsored Retirement Plan into an IRA. U.S. Securities and Exchange Commission, https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins .
How does the Nordson Corporation Salaried Employees Pension Plan calculate an employee's Accrued Benefit, and what factors need to be considered to ensure accurate pension benefits at retirement? Understanding the components that contribute to the calculation is crucial for employees planning their retirement through Nordson Corporation.
Accrued Benefit Calculation: Nordson Corporation calculates an employee’s Accrued Benefit based on the Final Average Monthly Pay, the number of Years of Benefit Service, and an estimate of the employee’s Social Security benefit. The formula used includes a reduction if an employee has less than 30 Years of Benefit Service(Nordson Corporation_Feb…).
What are the eligibility criteria for joining the Nordson Corporation Salaried Employees Pension Plan, and how can employees determine their vesting status as they approach retirement? It is essential for employees to be aware of the timelines and requirements necessary to fully benefit from the retirement plan offered by Nordson Corporation.
Eligibility Criteria: Employees become eligible for the Nordson Corporation Salaried Employees Pension Plan after completing a Year of Eligibility Service, which requires at least 1,000 hours of work annually. Vesting occurs after completing 5 Years of Vesting Service, ensuring full entitlement to benefits(Nordson Corporation_Feb…).
In what ways can employees at Nordson Corporation access information about their pension plan benefits, and what steps should they follow if they believe their claims for benefits were denied? Knowing the appropriate channels for receiving information can help employees navigate any discrepancies with their pension benefits.
Accessing Pension Information and Claiming: Employees can access their pension plan details through John Hancock’s website or phone service. If a benefit claim is denied, employees can follow the claims procedure outlined by Nordson, which includes submitting a written request and appealing decisions(Nordson Corporation_Feb…).
What options does Nordson Corporation provide for early retirement, and how can employees assess whether an early retirement is financially feasible for them? Understanding the implications of early retirement can significantly impact an employee's long-term financial security.
Early Retirement Options: Nordson Corporation offers early retirement options starting at age 55, with at least 5 years of vesting service. Benefits are reduced by 6% per year for each year that early retirement is taken before the Normal Retirement Date(Nordson Corporation_Feb…).
How does Nordson Corporation's pension plan ensure that employees receive monthly benefits post-retirement, and what are the different forms of payment available to retirees? Grasping the payment structures may help employees make informed decisions regarding their retirement income.
Monthly Benefit Payments: Employees retiring from Nordson Corporation can choose various payment methods, including a Life Annuity or a 50% Joint & Survivor Annuity for married participants. Payments start after the Normal Retirement Date or early retirement, depending on the selected option(Nordson Corporation_Feb…).
What rights do participants have under the Employee Retirement Income Security Act (ERISA) concerning their Nordson Corporation pension plan, and what should they do to enforce these rights effectively? Employees should be aware of their rights to protect themselves during the benefit claiming process.
ERISA Rights: Under ERISA, participants have the right to receive information about their benefits, file claims, and sue if benefits are denied. Plan fiduciaries must act in the best interest of employees, and participants are protected from retaliation for asserting their rights(Nordson Corporation_Feb…).
How does the termination or amendment of the Nordson Corporation Salaried Employees Pension Plan affect employees' accrued benefits, and what protections are in place? Awareness of these scenarios can help employees better plan their financial futures in relation to their pensions.
Plan Termination or Amendment: If the plan is terminated or amended, accrued benefits cannot be reduced, and employees’ benefits become 100% vested. This ensures that employees retain the benefits they have earned up to the point of the change(Nordson Corporation_Feb…).
In what situations might employees at Nordson Corporation lose their pension benefits, and what preventative actions can they take to ensure they remain eligible for these benefits? Understanding the risks involved in pension plans can aid employees in maintaining their retirement security.
Loss of Pension Benefits: Employees may lose pension benefits if they leave Nordson Corporation before vesting or fail to select appropriate survivor options. Keeping the Plan Administrator informed of current contact information is crucial to avoid losing benefits(Nordson Corporation_Feb…).
How can employees at Nordson Corporation address questions or concerns related to their retirement planning, and what resources are available for personalized assistance? Access to proper resources is vital for employees needing guidance throughout their retirement journey.
Retirement Planning Resources: Employees can contact the Plan Administrator or use John Hancock’s automated services to address questions about retirement planning. Personalized assistance is available for any specific pension-related inquiries(Nordson Corporation_Feb…).
What steps should employees take to contact Nordson Corporation or the Plan Administrator to get detailed information about their pension plan, and what should they include in their inquiries to ensure a comprehensive response? Effective communication techniques can significantly enhance employees' understanding of their benefits. These questions have been designed to help employees of Nordson Corporation navigate their pension plan and retirement effectively.
Contacting the Plan Administrator: Employees can contact Nordson Corporation or the Plan Administrator by calling the number listed in the Summary Plan Description. It’s advisable to provide detailed questions regarding benefit amounts, vesting status, or payment options to receive a thorough response(Nordson Corporation_Feb…).
For more information you can reach the plan administrator for Nordson at , ; or by calling them at .
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