Rollover

Retirement

A rollover transfers money from one retirement account to another (usually 401(k) to IRA after leaving a job) while preserving tax-deferred status. Two types: direct rollover (employer sends check directly to receiving institution — recommended) and 60-day rollover (you receive the check and have 60 days to redeposit; mandatory 20% withholding makes this risky). Roll Traditional 401(k) → Traditional IRA; Roth 401(k) → Roth IRA. You can also do an in-plan Roth conversion (rolling pre-tax 401(k) to Roth 401(k), paying tax). One indirect rollover per 12-month period per IRA. Done improperly, rollovers trigger taxes and penalties.