What is an IRA Rollover?
An IRA rollover is when you move your assets from a qualified plan into an IRA. You are only allowed to move your assets as a result of a “triggering event” or if your plan allows in-service withdrawals. Triggering events include termination of employment, disability, death or plan termination. An IRA rollover is not a taxable event. Unlike annual IRA contributions, it is not subject to the yearly $4000 limitation. You cannot roll qualified plan assets directly into a Roth IRA. You must first move qualified plan assets into a Traditional IRA then convert to a Roth IRA.
