What is a direct rollover?

Direct rollover

A rollover moves money from one retirement account to another, like an old employer's 401(k) (definition, opens in a new tab) into a new one or an IRA. In a direct rollover the money goes straight between the accounts, so nothing is withheld (definition, opens in a new tab) for tax and no tax is due. The money keeps growing for retirement.

Where does this site use it?

• What does cashing out my 401(k) cost?

Related terms

• 401(k)
• Withholding (W-4)

General education, not financial advice.