Retirement Account Rollovers refer to the process of transferring funds from one retirement account to another without incurring taxes or penalties.
Typically, this occurs when an individual changes jobs or retires and wishes to move their 401(k) or other employer-sponsored retirement plan to an Individual Retirement Account (IRA) or another qualified plan. A rollover allows the individual to maintain the tax-deferred status of their retirement savings.
For example, if an employee leaves a company and has a 401(k) plan, they can choose to roll over those funds into a traditional IRA. This transfer must be completed within 60 days to avoid taxes, or it can be processed directly by the financial institutions involved to ensure compliance with IRS rules.
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