Rollover (Noun)
Meaning
The act of changing the institution that invests your pension plan without incurring a tax penalty.
Classification
Nouns denoting acts or actions.
Examples
- I decided to do a rollover of my 401(k) to an IRA with a new provider to have more investment options.
- A rollover allowed her to transfer her retirement savings to a new firm with lower management fees.
- He chose to initiate a rollover when he switched jobs to keep his pension plan organized under one provider.
- It's essential to follow the rollover rules carefully to avoid taxation on your retirement savings.
- Doing a rollover gave them more flexibility and better control over their investment choices.