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Glossary

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Rollover (Direct)

A direct rollover is a tax-free movement of funds from one qualified retirement account to another when you leave a job, retire, or switch employers. Instead of receiving the funds directly, you can arrange for the money to be moved directly from your current retirement plan to another eligible retirement plan, such as an IRA or another employer's plan.

This type of transaction can help you avoid taxes and penalties that would otherwise apply to an early distribution.