What Does 401K Rollover Mean? 
A 401 -LRB- k -RRB- rollover simply means that you are taking your funds in your current 401 -LRB- k -RRB- and moving them , rolling over , into an IRA , Individual Retirement Account . You can also transfer the your 401 -LRB- k -RRB- to another 401 -LRB- k -RRB- as well if you are working for a new employer and they have a 401 -LRB- k -RRB- option . By rolling over your monies , you avoid any tax consequences as the money remains tax-deferred . There are several options for rolling these monies to an IRA . I usually recommend rolling them into an Annuity , a Fixed Indexed Annuity . The reason is to preserve the moneys you have worked so hard to get . You are guaranteed to never lose your initial balance and usually get market like gains . When you retire , if the account was set up correctly , you can get a lifetime income as well . If you are looking at options and would like more information , do not hesitate to contact your broker adviser . If you do not have one or would like a new perspective , contact me . 