Rollover IRA
The Rollover IRA is established and funded with monies that have come from a qualified plan such as a 401k, 403b, or lump sum pension.
You'll generally move assets from your qualified plan into the Rollover IRA when you change jobs, retire or when your company changes their existing plan and and adopts a new plan provider.
Unlike the Roth IRA or Traditional IRA which are funded with your contributions-the Rollover IRA is funded by having your employer transfer your funds directly to the IRA with a "direct rollover".
If the funds are distributed directly to you, you'll have 60 days to deposit them into the IRA.
Remember, a Roth IRA is not eligible to recieve rollover contributions from employer plans. You can convert the money to the Roth after the rollover. This will change in 2007, as the new Pension Protection Act of 2006 will allow funds to roll into a Roth IRA, however, it still will be a taxable event.
Eligibility
Anyone who receives a distribution from a retirement plan.
Contribution Limits
There are no contribution limits. Many IRA custodians will set up this account as a "zero-balance" account and allow funding later with the amount of your former employer balance.
Visit the Rollover Center to learn more.