This is a specially designated type of retirement account that congress invented to help people who have numerous different retirement accounts from previous employers. It maintains the tax-deferred status and let's you take that 401k, 403b, and other retirement accounts and "roll" them up into one account so that it's easier to keep track of. Just like in other IRA accounts, they allow for you to invest in stocks, bonds, ETFs and mutual funds.
They have the same type of restrictions and penalties as well. You can't withdraw until you're 59.5 years old and you need to start taking minimum distributions when you're 70.5. The assets grow tax free, but are taxed when withdrawn since they went in pretax.
Rollover IRA can also be transferred to your current or future employer's retirement plan if you wish to consolidate it. I wouldn't recommend this though unless you gain some sort of economies of scale benefit.
They have the same type of restrictions and penalties as well. You can't withdraw until you're 59.5 years old and you need to start taking minimum distributions when you're 70.5. The assets grow tax free, but are taxed when withdrawn since they went in pretax.
Rollover IRA can also be transferred to your current or future employer's retirement plan if you wish to consolidate it. I wouldn't recommend this though unless you gain some sort of economies of scale benefit.
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