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

Extension of coverage available under the Standard Fire Policy. The standard policy only covers the perils of fire and lightning. The endorsement covers riot, riot attending a strike, civil ...

In insurance, combination of the loss ratio and the expense ratio. The combined ratio is important to an insurance company since it indicates whether or not the company is earning a profit ...

Life is unpredictable so to compensate this, people have invented insurance. Insurance deals with unforeseen events. Sometimes insurance companies cover only a part of your losses and a few ...

Trust under which grantor retains income from the assets that have been transferred to the trust. This trust permits the avoidance of probate, protects the assets from creditors, and leads ...

Individual who has the right to the use of assets while the usufruct is in force. ...

Regulation named after a former Superintendent of Insurance of New York State, and instituted in the early 1900s. It requires every insurer admitted to New York to comply with the New York ...

Amount of reinsurance accepted by a second reinsurer which is in excess of the original insurer's retention limit and the first reinsurer's first surplus treaty's limit. ...

Section describing coverages under a policy. Elsewhere in the policy other sections may restrict or exclude coverages. ...

Creation of a demand for a company's products, its distribution, and services for customers who purchase that product. Actuarial research and development, underwriting efficiency, and claim ...

Popular Insurance Questions