Direct Rollover
Definition of "Direct rollover"
Eligible rollover distribution that is paid directly from an employee's employee benefit insurance plan to the employee's individual retirement account (IRA) or to another plan maintained by the employer that accepts rollovers. Under such a rollover, the employee is not taxed on any part of the distribution until it is withdrawn from the IRA or the employer-maintained plan. The employee can open an IRA to receive the distribution. If an employee is employed by a new employer who maintains an employee benefit insurance plan that accepts rollovers, the distribution can be placed directly into that plan. If the new employer does not accept rollovers, the employee can place the distribution into an IRA.
Popular Insurance Terms
Investment risk associated with the psychology of the market in that emotions affect the price of a company's stock that, in most instances, has nothing to do with the current or potential ...
Health insurance coverage for eye examinations, and eyeglass or contact lens prescriptions. ...
Average earned monthly income of the insured wage earner after regular earned income has been interrupted or terminated because of illness, sickness, or accident. This income amount is ...
Procedure for offering reduced auto insurance rates to drivers with good records, and imposing higher rates on bad drivers. Typically, premiums are weighted under a system that assigns ...
Mathematical combination of one-year term insurance and one-year deferred permanent insurance such that no reserve has to be set up for the first year the policy is in force and allowance ...
Legal power of the commissioner of Internal Revenue to approve any classification of employees that does not discriminate in favor of a prohibited group. Such approval is necessary before a ...
Means of funding permitted under the employee retirement income security act of 1974 (ERISA). The administrator of a pension plan can comply with required minimum funding standards by ...
Contract providing a monthly income benefit to members of a group of employees. A group annuity has the same characteristics as an individual annuity, except that it is underwritten on a ...
Classification of occupations according to the degree of risk inherent in that occupation. ...
Have a question or comment?
We're here to help.