rollover

Thân thiện

A customer completes a rollover of their retirement savings to a new financial institution.

Definition

1. Noun:
   • A financial transaction: The process of moving funds from one investment account or retirement plan to another of a similar type, typically done to defer tax penalties.
   • The act itself: The specific action or instance of executing such a transfer.

Usage

• This term is primarily used in financial and retirement planning contexts. It describes a method of preserving capital by transferring it directly between accounts, avoiding a taxable distribution.

Examples

• Noun:
  • I completed a rollover of my 401(k) from my previous employer to an IRA.
  • The key benefit of a direct rollover is that you avoid immediate taxation.

Advanced Usage

• "to do a rollover" / "to execute a rollover": To perform this specific financial transaction.
  • You have 60 days to do a rollover from the date you receive the distribution.
• "rollover rules": The regulations governing how such transfers must be conducted.
  • It's important to understand the rollover rules to avoid unexpected fees.

Variants and Related Words

• Roll over (verb phrase): The action of performing a rollover.
  • You can roll over the assets into a new plan.
• IRA rollover / 401(k) rollover (compound nouns): Specific types of rollovers involving Individual Retirement Accounts or 401(k) plans.

Synonyms

• Transfer: A general term for moving assets from one place to another.
• Conversion: Often used for changing the type of account (e.g., Traditional IRA to Roth IRA), which is a different, often taxable, event.

Related Terms (Contextual)

• Direct rollover: A trustee-to-trustee transfer where the individual never takes possession of the funds.
• Indirect rollover: A transfer where funds are paid to the individual, who must then deposit them into a new account within 60 days.
• Pension rollover: Specifically moving a pension plan.

Học thuật

Noun

1. the act of changing the institution that invests your pension plan without incurring a tax penalty