Direct Rollover
Definition of "Direct rollover"
Eligible rollover distribution that is paid directly from an employee's employee benefit insurance plan to the employee's individual retirement account (IRA) or to another plan maintained by the employer that accepts rollovers. Under such a rollover, the employee is not taxed on any part of the distribution until it is withdrawn from the IRA or the employer-maintained plan. The employee can open an IRA to receive the distribution. If an employee is employed by a new employer who maintains an employee benefit insurance plan that accepts rollovers, the distribution can be placed directly into that plan. If the new employer does not accept rollovers, the employee can place the distribution into an IRA.
Popular Insurance Terms
Actual price paid for property when acquired, minus depreciation. Original cost less depreciation is used to compute actual cash value, which is often the insurable interest in a property. ...
12-month period from the date of issue of a policy as stated in its declarations section. ...
Coverage for a group of individuals under one policy. Usually, members belong to a particular company, union, or trade association. In a contributory plan a lump sum premium is paid by the ...
Funds receivable or payable that have not been paid in a timely manner, commercial credit insurance protects an insured against declines in the value of receivables due to insolvency of a ...
Sum total of the assets owned by an individual. ...
Ordinary life insurance under which premiums are calculated so that the first few years of premiums are less than normal, and subsequent premiums are higher than normal. ...
Legal document that permits the individual to declare his or her desires concerning the use of life-sustaining treatment to be made at the point in time when death is imminent and the ...
Compensation in which an insurance agent's fee for the sale of a policy is the same year after year. Most life insurance companies pay a high first year commission and lower commissions in ...
Portion of reinsurance premium received by the reinsurer that relates to the unexpired part of the reinsured policy. ...
Have a question or comment?
We're here to help.