pension rollover

pension rollover definition - business

pension rollover

Reinvestment of a lump-sum pension payout into an individual retirement account. The rollover permits a pension beneficiary to defer taxation until funds are paid out of the individual retirement account. A pension rollover is an alternative to paying taxes on a lump-sum payout, either in one year or by averaging over a number of years.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.