 |
Rollover An employee's transfer from one qualified tax-deferred pension plan (such as a 401k plan) into another (such as a new employer's 401k plan) that does not expose the money to early withdrawal penalties nor tax liability. An IRA rollover is a common choice for employees leaving a company.The transfer must be made within 60 days of receiving a cash distribution. The law requires 20 percent federal income tax withholding on money eligible for rollover if it is not moved directly to the second plan or an investment company. |
