What is a rollover IRA?
If you have an employer-sponsored retirement plan, such as a 401K or other tax-deferred accounts, you may be eligible to move the money into a rollover IRA without incurring a tax liability. Be sure you understand rollover regulations in order to make sure you avoid tax consequences. We recommend consulting your tax advisor before you complete a rollover.
A Rollover IRA is an Individual Retirement Account that is often used by people who have changed jobs or retired and have assets accumulated in their employer–sponsored retirement plan. Eligible distributions from such plans can be rolled over directly into a Fidelity IRA without incurring any tax penalties, and assets remain invested tax–deferred. Consolidating multiple employer-sponsored retirement plan accounts into a single Rollover IRA can make it easier to allocate and monitor your retirement assets.
A rollover IRA is an IRA established with funds that are distributed from a QRP or TSA and paid directly to the individual. QRP or TSA distributions occurring after December 31, 1992, are subject to a mandatory 20 percent federal income tax withholding at the time of distribution. Regardless of the source of the funds, the deposit to a rollover IRA must take place within 60 calendar days of the date the funds are received by the employee or spouse beneficiary.
