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Eligible Rollover Distribution

   Also found in: Acronyms 0.01 sec.
Eligible Rollover Distribution
The amount of money in an IRA or other qualified retirement plan that may be rolled over into another plan. Rollovers occur most often when a person changes employers; they may occur without penalty once per year.


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If a Roth 401 (k) makes an eligible rollover distribution directly to the employee, he or she could use the 60-day rollover option to transfer all or part of the distribution amount to a Roth IRA.
A mandatory 20% federal income tax withholding applies to any eligible rollover distribution that is not transferred by a direct rollover.
Expansion of Spousal Rollovers Under current law, an employee's surviving spouse who receives an eligible rollover distribution from a qualified plan on account of the employee's death may roll over such amounts into the surviving spouse's own IRA.
 
 
 
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