A rollover is when you do the following: 1. Reinvest funds from a mature security into a new issue of the same or a similar security. 2. Transfer the holdings of one retirement plan to another without suffering tax consequences. 3. Move a forex position to the following delivery date, in which case the rollover incurs a charge.
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TERM OF THE DAY
Rollover
A rollover occurs when reinvesting funds from a mature security into a new issue of the same or a similar security; transferring the holdings of one retirement plan to another without suffering tax consequences; or moving a forex position to the following delivery date. The distribution from a retirement plan is reported on IRS Form 1099-R and may be limited to one per annum for each IRA. The forex rollover fee arising from the difference in interest rates between the two currencies underlying a transaction is paid to the broker.
Term Of The Day Selected By
Fred Leamnson
Founder & President
Leamnson Capital Advisory, LLC
Reston, VA

https://www.leamnsoncapital.com/
Breaking it Down:
Rollovers often occur as a way of making money for a specific purpose, such as immediate income from... Read More
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Related Definitions
Direct Rollover
Direct rollover assets are made payable to the qualified plan or IRA Custodian/Trustee, never to the individual. Read More
Eligible Transfer
An IRS-allowed movement of assets into or out of an individual retirement account and into another type of qualifying account. Read More
Rollover IRA
A rollover IRA is an account that allows for the transfer of assets from an old employer-sponsored retirement account to a traditional IRA. Read More
New Issue
A reference to a security that has been registered, issued and is being sold on a market to the public for the first time. Read More
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