Rollover IRA
IRA holding assets rolled over from an employer plan
A Rollover IRA is commonly used when you leave an employer and move retirement assets from a workplace plan (like a 401(k)) into an IRA, typically via a direct rollover to avoid current taxes.
The core idea (in plain English)
You keep retirement money tax‑advantaged while gaining more control and often more investment choices than your old employer plan.
Why people roll over
- Consolidate multiple old workplace plans into one account.
- Potentially reduce fees or expand investment options.
- Simplify tracking and beneficiary management.
Common pitfalls
- Using an indirect rollover and missing deadlines.
- Triggering withholding or taxes by taking a distribution instead of a rollover.
Quick mental checklist
If you’re changing jobs, a Rollover IRA can help keep retirement assets organized — just ensure the rollover is completed correctly.
Educational only. Always confirm eligibility, limits, and plan rules with IRS guidance or plan documents.