Final answer:
There are different types of retirement account transfers that are legal, such as traditional IRAs and defined contribution plans like 401(k)s and 403(b)s.
Step-by-step explanation:
There are different types of retirement account transfers that are legal. One type is a traditional IRA, which is a tax-deferred account. With a traditional IRA, taxes are paid on the lump sum upon withdrawal.
Another type is a defined contribution plan, such as a 401(k) or 403(b), where the employer contributes a fixed amount to the worker's retirement account on a regular basis. These plans are tax deferred and portable, meaning they can be transferred if the individual changes jobs.