What is a rollover IRA?
A. The Rollover IRA is a type of Individual Retirement Account designed for people who are leaving a job or retiring and receiving money accumulated in an employer-sponsored retirement plan. Eligible distributions from such plans may be “rolled over” directly into a Fidelity Rollover IRA. A direct rollover allows you to avoid the mandatory 20% withholding for federal income tax, to avoid possible penalties for early withdrawal, and to continue deferring income tax. A. Rollover IRA can be invested in mutual funds, stocks, bonds, or other securities, including CDs and treasuries. This flexibility makes opening a Rollover IRA a good opportunity to rebalance your retirement portfolio, by rolling your savings into instruments not traditionally offered by employer plans. If you are changing jobs, you may want to review Job changer distribution options for more information. If you are retiring, Distribution options for pre-retirees can give you more information about your options.
A Rollover IRA is an Individual Retirement Account for people who are changing jobs or retiring and have assets accumulated in an employer-sponsored retirement plan. These assets can be rolled over directly (inside 60 days) into a Rollover IRA without incurring any tax penalties, and they remain tax-deferred.
top of page A rollover IRA is an Individual Retirement Account or Individual Retirement Annuity (IRA) invested with the money from your employer-sponsored plan. A Rollover IRA can be invested in mutual funds, stocks, bonds, or other eligible securities, including CDs and treasuries. This flexibility makes opening a Rollover IRA a good opportunity to rebalance your retirement portfolio, by rolling your savings into instruments not traditionally offered by employer plans.
A. The Rollover IRA is a type of Individual Retirement Account designed for people who are leaving a job or retiring and receiving money accumulated in an employer-sponsored retirement plan. Eligible distributions from such plans may be “rolled over” directly into a Fidelity Rollover IRA. A direct rollover allows you to avoid the mandatory 20% withholding for federal income tax, to avoid possible penalties for early withdrawal, and to continue deferring income tax. Rollover IRA can be invested in mutual funds, stocks, bonds, or other securities, including CDs and treasuries. This flexibility makes opening a Rollover IRA a good opportunity to rebalance your retirement portfolio, by rolling your savings into instruments not traditionally offered by employer plans.
