A transfer method when assets are transferred from a qualified plan (e.g. 401k, 403b or 457b) to an individual retirement account (IRA). The funds are given directly to the individual, who then has full use of the funds for 60 days, after which the funds must be deposited into the IRA to avoid income tax liability. An indirect rollover is always subject to a 20% withholding rate, unlike a direct rollover which is reportable, but not taxable.