What is a Rollover?

A rollover occurs when you move your money from a qualified retirement plan, such as an employer-sponsored 401(k) plan, into a Traditional IRA or another qualified retirement plan. Typically, you are eligible for a rollover only under the following circumstances:

• Retiring. You’ve been saving for years and years...and now it’s finally time to enjoy your hard-earned savings. Many people find that consolidating their retirement assets into a Traditional IRA makes it easier to manage and monitor their money.

• Changing jobs. When people change jobs, they often have money in a qualified retirement plan sponsored by their employer. A rollover lets them move this money into a Traditional IRA of their own choosing.

• Between jobs or switching careers. Perhaps you’re taking advantage of opportunities to explore a new profession. Or maybe you’re simply spending time away from the work force to raise a family or go back to school. Whatever your situation, you may wish to simplify your finances by transferring the money from a previous employer’s plan to a Traditional IRA.