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Last year I did a rollover from my 401K to a IRA CD. Why? Because the market scared me and I wanted out. The 401K was managed by Fidelity and so I rolled the funds into one of their brokerage CD's. No income taxes triggered. A direct rollover. Then early this year I transferred those funds into another IRA CD that I established at a local bank. Why? Because I made a lot of money on the brokerage CD but had to sell it. That move was very inportant in that I never saw the funds. This is called a custodial transfer. Fidelity to local bank all by electronic transfer. It can be done by check but the safest way to avoid income tax is to keep your hands off the money. A lot of this information is available on the IRS web site. There are a lot of rules regarding how to do rollovers and fransfers and how often you are allowed to roll the funds.
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