When an employee rolls over a $10,000 balance from a qualified plan to a Traditional IRA, how much will she receive and what is the time frame for a tax-free rollover?

In the context of rolling over funds from a qualified plan to a Traditional IRA, the process is designed to allow the employee to transfer the entire balance without incurring immediate tax consequences. When an employee rolls over a $10,000 balance, they do indeed receive the full amount, which is $10,000.

Furthermore, the significant aspect of this transaction is the timeframe for a tax-free rollover. The IRS allows individuals 60 days from the time they receive the distribution to complete the rollover into a Traditional IRA. If the funds are not rolled over within this 60-day period, the entire amount may be subject to taxes and potential penalties.

The selected answer mentions a $10,000 rollover amount, which is correct, but erroneously states the timeframe as 60 days. The correct timeframe is indeed the 60-day period, thus confirming that the answer is accurate with respect to the amount rolled over.