What is an IRA Rollover? An IRA Rollover is a tax-free transfer of funds from a tax-deferred plan — a 401(k) plan, Defined Benefit Plan, 403(b) Plan, etc., to a Traditional IRA. An IRA Rollover can be done when an employee changes jobs, is laid off or retires and is entitled to a distribution from the old employer's 401(k) plan or other Qualified Retirement Plan. By doing an IRA Rollover, the funds can be transferred tax-free to the employee's own IRA. This means the funds can continue to grow on a tax-deferred basis inside the IRA. It also means that the funds are under the complete control of the employee with respect to investment decisions and future distributions.

The term "IRA Rollover" can also be applied to a transfer of funds from one IRA to another IRA. This too can be done on tax-free basis under a different set of rules that apply to IRA-to-IRA rollovers. Rollovers, transfers, and conversions between IRAs and other retirement arrangements can include any asset.