Rollover means to extend a particular financial agreement.
- In the context of retirement accounts, rollover often refers to transferring funds from one Individual Retirement Account (IRA) to another traditional IRA or Roth IRA, or from a qualified retirement plan into an IRA. This transfer is reported on an IRS Form 1099-R. Most retirement rollovers are tax-free events.
- In the context of corporate loans, a rollover can refer to a loan under a revolving credit facility to repay a maturing loan under that facility. In other words, a rollover is borrowing under the same facility to repay existing debt that is coming due.
[Last updated in May of 2022 by the Wex Definitions Team]