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Traditional Rollover IRA

Trading Term

This is a Traditional IRA that only holds assets received as a rollover distribution from a retirement plan. US securities firms may permit investors to sub-classify a Traditional IRA as a Rollover IRA. This classification helps the client identify the assets as a rollover from a retirement plan. Rollover IRAs are often used when an individual receives a lump sum distribution from an employer sponsored retirement plan (e.g., 401(k) or 403(b) and wants to continue the tax-deferred growth of those retirement funds.

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