AARP
Short Company Name:
AARP
Long Company Name:
AARP Financial
Company Type:
Association
Web Site:
Phone Number:
866-218-6142
Key Phrases:
Glossary:
IRA Rollover
Sometimes referred to as a “rollover IRA,” an IRA rollover comes into play when you change jobs and wish to take money out of your 401k plan. When you take money from the previous employers’ 401k plan and “roll it over” into an IRA, the individual retirement account that receives the transferred funds is referred to as a Rollover IRA. The rollover IRA can be either a traditional or a Roth IRA. There are other distribution options for 401k money that is with a previous employer, such as simply transferring transfer the money directly to a new employer-sponsored 401k plan. You may also take the funds as a regular distribution without moving the funds into new 401k or rollover IRA, but a 10 percent penalty and normal tax rates will apply. With an IRA rollover, the trustee of your old plan writes you a check and you’ve up to 60 days to find a suitable IRA account. You can rollover from IRA to IRA, part or all of the funds, or in some cases, you can rollover into a conduit IRA, which is a temporary stop when you’re shifting from one employer’s 401k to another.
