rollover
Definition 1
A tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within a specific time frame, usually 60 days. These transfers can happen when leaving a job at an employer who offered a retirement plan such as a 401(k) plan. The company can issue a check for the amount minus 20% in withheld taxes. To avoid this penalty, the rollover must be done trustee to trustee, meaning that the check is made out to the new trustee or custodian of the rollover IRA. The company will provide the check and the participant must deposit the check into the new account within 60 days. also called IRA rollover.
Definition 2
More generally, a movement of funds from one investment to another.
 Cite this definition
Related Terms
conduit IRA, direct rollover, dividend rollover plan, pension plan, inherited IRA, nonperiodic distribution
Related Research Articles from the InvestorGuide.com University
Annuities
Learn all you need to know about annuities. Includes a description of fixed, variable, and equity-indexed annuities, with emphasis on taxes, distributions, payments, and fees of each.
401(K)
Learn the details about 401(k) retirement plans, including eligibility, contributions, investment options, fees and expenses, beneficiaries, and payment options at the time of retirement.
Roth IRA
Not satisfied with a typical IRA? Learn all you need to know about Roth IRAs, including information on contributions, withdrawals, conversions, distributions, and recharacterizations.
Featured Sponsor
Start earning $200 to $900 a day working at home. No experience necessary. Money-back guarantee.
|
|
