Eligible Rollover Distribution
DEFINITION of 'Eligible Rollover Distribution'
A distribution from an IRA, qualified plan, 403(b) plan or 457 plan that is eligible to be rolled over to another eligible retirement plan.
BREAKING DOWN 'Eligible Rollover Distribution'
Often, an eligible rollover distribution occurs when an individual leaves the service of an employer. The rollover rules allow the individual to bring the assets to their IRAs or a retirement plan at a new employer.