rollover

Rollover is the process of extending, renewing, or transferring a financial arrangement or assets from one term, product, or account to another. The term is widely used in finance but also in other contexts such as vehicle accidents or user interface design.

In financial markets, a rollover allows an investor or holder to maintain exposure without realizing gains or losses immediately, or to preserve tax advantages.

In retirement savings, a rollover refers to moving assets from one qualified plan to another, for example from a 401(k) to an individual retirement account (IRA). A direct rollover transfers assets directly between trustees and typically avoids withholding of taxes; an indirect rollover involves the participant receiving funds and must redeposit within a 60-day window to avoid taxes and penalties.

Rollovers also occur at contract maturity. For certificates of deposit, government or corporate bonds, the proceeds may be rolled into a new security. In futures and other derivatives, a roll involves closing a near-term contract and opening a longer-dated one to extend exposure.

In lending, a rollover means renewing a loan by paying off the existing obligation with a new one, effectively extending the term. Rollovers can incur additional fees or higher interest rates and may increase total debt.

In insurance and annuities, rollovers or tax-free exchanges (such as certain 1035 exchanges) allow funds to move between products without immediate taxation, subject to regulatory rules.

Other meanings include vehicle rollover, an accident in which a vehicle tips onto its side or roof, and the rollover state in computer interfaces, where a cursor hovers over an element.