What is the difference between a rollover&traditional ira?
A rollover IRA is the recipient of transferred funds from another retirement account. Rollover accounts can be traditional IRAs or other types of retirement accounts.Rollover IRAsA rollover IRA is not a separate type of IRA. Any IRA that contains rollover funds is a traditional or Roth IRA.Traditional IRAsA traditional IRA is a retirement account in which the contributed funds are taxable only when they are withdrawn. A penalty applies to withdrawals before age 59 1/2. Annual withdrawals, or distributions, are mandatory starting April 1 of the year following the year in which you reach age 70 1/2.Eligible Rollover AccountsYou can roll over funds from and to any two of these three account types: traditional IRAs, section 403(b) plans and section 457 plans. You can roll over your traditional IRA into a Roth IRA, but you cannot do the reverse.
