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

Premium required by an insurance company for plans subject to premium adjustment. The initial provisional premium is paid to put a commercial property or liability insurance policy into ...

Money set aside to pay for losses. Rather than buy insurance coverage for all potential losses, some businesses and individuals choose this form of self insurance to cover all or a portion ...

Based on historical loss experience, from which future loss experience is predicted. ...

One used to determine the life expectancy of annuitants. Annuity buyers are not representative of the population as a whole, or of life insurance buyers. Because annuities pay an income for ...

Coverage for a group of individuals under one policy. Usually, members belong to a particular company, union, or trade association. In a contributory plan a lump sum premium is paid by the ...

Circumstance in which there is a probability loss to personal property or real property resulting from property damage, destruction, or disappearance. ...

Proportion of losses incurred to premiums earned. This ratio indicates the amount of a premium dollar that is being consumed by losses. ...

Arbitrator who settles disputes over the amount of loss when an insurer and an insured do not agree. ...

Estate under the legal and administrative guidance of both the surety and the fiduciary. Any actions on the part of the estate requires the signatures of both in order to reduce the chances ...

Popular Insurance Questions