Business, Legal & Accounting Glossary
An IRA rollover is a lump-sum distribution deposited from an existing retirement plan into an individual retirement account. The existing retirement plan is frequently a 401k, but it may be any other type of plan. To be eligible for tax-deferral, an IRA rollover must meet certain requirements: 1) the IRA rollover funds must be placed into the new IRA within 60 days of withdrawal from the old account; 2) to avoid a penalty tax on the IRA rollover, the new IRA’s balance must be the same as that of the old account; and 3) only one IRA rollover may occur per year. An IRA rollover can be undertaken on one’s own by requesting a form from the custodian of the old account, or a financial institution can perform the IRA rollover as part of an investment plan; however, the latter choice will limit the number of possible accounts the IRA rollover funds can be put into.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for IRA Rollover are sourced/syndicated and enhanced from:
This glossary post was last updated: 9th February, 2020