To rollover means to transfer between equivalents, and in the financial industry, a rollover transfers funds from one tax-free account to another. Clients use rollovers to maintain the tax-exempt status of their investments, but also to benefit from different or better investments, so rollover contributions from 401(k) to IRA and from IRA to IRA are common. The destination tax-free account does not need to exist to be rolled over to; it can be created at the time that the rollover is processed.

Made to Existing IRA Plans

For rollover contributions made to an existing IRA plan at CCB, do the following:

1. Complete the IRA Rollover or Conversion Review form. This form explains the complex rules governing rollovers and conversions and helps ensure the client is eligible for a rollover or conversion.
2. If the client checks:
   • One or more No boxes, do not allow the rollover/conversion contribution and tell the client to seek professional financial guidance.
   • Zero No boxes, follow the procedures in Contributing to Existing IRA Plans. 

Made to New IRA Plans

For contributions that establish a new IRA plan at CCB (or if the contribution is a rollover from a qualified plan or conversion from Traditional IRA to Roth IRA), do the following:

1. Complete the IRA application or Roth IRA application (paying special attention to the Rollover Review section which helps to ensure the client is eligible for a rollover or conversion).
2. Follow the procedures in New IRA Plans.