What is a rollover?
A rollover is any transfer of funds from one retirement account to another retirement account.
Typically, rollovers are tax-free if both retirement accounts share the same tax benefits like transferring funds from one traditional IRA or 401(k) account to another traditional IRA or 401(k). However, if you're moving money from a traditional retirement account to a Roth retirement account, it's considered a taxable conversion.
Usually, a rollover happens as a direct transfer between the financial institutions holding the retirement accounts. You can also do a rollover by withdrawing funds from one retirement account and depositing them into another retirement account within 60 days after the withdrawal.
Typically, rollovers are tax-free if both retirement accounts share the same tax benefits like transferring funds from one traditional IRA or 401(k) account to another traditional IRA or 401(k). However, if you're moving money from a traditional retirement account to a Roth retirement account, it's considered a taxable conversion.
Usually, a rollover happens as a direct transfer between the financial institutions holding the retirement accounts. You can also do a rollover by withdrawing funds from one retirement account and depositing them into another retirement account within 60 days after the withdrawal.
