Whats a rollover IRA?
Typically, a rollover IRA is funded with eligible distributions from a qualified company-sponsored retirement plan. When you first roll money into an IRA, it is initially invested in this type of account. If you wish to continue saving for your retirement, you may contribute additional money to your account. However, if you add new contributions to your rollover IRA, you will lose the ability to roll your account into a new company-sponsored retirement plan in the future. That’s because when you add new contributions to your account it will be converted into either a Traditional or Roth IRA. For this reason, you may want to keep your rollover IRA separate and create a new account for any additional contributions.
