# 401(k) Rollover

*Retirement & Benefits — Finicade finance glossary*

A rollover moves a retirement balance from an old employer's plan into an IRA or a new employer's plan without triggering tax. Always use a direct trustee-to-trustee transfer: an indirect rollover pays you, withholds 20%, and gives you 60 days to redeposit the full amount including the part that was withheld. The reasons to roll are lower fees and wider choice; the reasons not to are the rule of 55 and stronger creditor protection in workplace plans.

**Also known as:** 401k rollover, pension transfer, direct rollover

**Related terms:** [401(k)](https://finicade.com/glossary/401k), [Traditional IRA](https://finicade.com/glossary/traditional-ira), [Rule of 55](https://finicade.com/glossary/rule-of-55), [Expense Ratio](https://finicade.com/glossary/expense-ratio), [Roth Conversion](https://finicade.com/glossary/roth-conversion)

Source: https://finicade.com/glossary/401k-rollover