IRA Rollover

Definition: The transfer of money from another qualified retirement plan, such as a 401(k) or regular IRA, into another IRA. The IRA receiving the money can be a new IRA or an existing one. Done properly, no withholding is taken out of the former account and no taxes are due the following April. However, any rollover will trigger a reportable item, meaning you will have to indicate you did a rollover on your tax return.