Rollover IRA

This is a Traditional IRA that only holds assets received as a rollover distribution from a retirement plan.  U.S. securities firms may permit investors to sub-classify a Traditional IRA as a Rollover IRA.  This classification helps the customer 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.