Definition of "Tax-free rollover"

Andres Morejon real estate agent

Written by

Andres Morejonelite badge icon

RLAH Real Estate

  1. transfer of money from or an employer-sponsored pension or other qualified plan into an INDIVIDUAL RETIREMENT ACCOUNT (IRA) with out paying tax on the distribution.
  2. transfer of money from one individual retirement account to another without paying tax.
In both cases, the law allows the account holder 60 days to place the money in a new IRA account. Transfer from one account to another can be accomplished either by withholding the money from one account and depositing it in another within 60 days, or by instructing one institution to transfer it to a second. As long as the new deposit is made within 60 days, there is no current tax liability.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Coverage for damage or destruction of property with relatively high monetary value, such as stock brokerage house and bank shipments, which involve the transfer of securities and monies to ...

Let's dive into the world of real estate and investments! Today, we'll learn about the Securities Investor Protection Corporation, or SIPC for short. This is a genuine mouthful, but this ...

Coverage providing funds for maintenance of a business as closely to normal as possible in the event of a loss of a key person, owner, or partner. ...

Tax advantages of investing in life insurance fall into two main areas: tax deferral on untaxed buildup of earnings in such cash value policies as whole life insurance and annuities, and ...

Insurance coverage for the named insured and his or her eligible dependents. ...

Damage or destruction of property and/or property that is illegally transferred as the result of misconduct of individuals. The risk is insurable. ...

Market in which sellers dominate trading and force financial asset prices down. ...

In property and casualty insurance, contract section containing such information as name, description, and location of insured property; name and address of the insured; period a policy is ...

Type of endowment insurance that matures at a stipulated retirement age and whose purpose is to provide retirement income to the insured. ...

Popular Insurance Questions