Your employer must provide you with the option to directly transfer eligible rollover distributions from a qualified pension plan, 401(k) or 403(b) plan, to an IRA or another qualified plan. The employer mails the distribution check directly to the IRA recipient or plan or gives you the check for delivery to the recipient plan or IRA. In either case, the check must be made payable to the trustee or custodian of the new IRA or plan. This approach avoids the 20% withholding requirement.