Definition of rollover

1. renewal of a short-term obligation by mutual agreement of debtor and creditor. This short-term debt appears under current liabilities. Footnote disclosure of the arrangement is made along with major provisions.
2. movement of funds from one investment to another. For example, when a certificate of deposit or bond matures, the funds may be rolled over into another certificate of deposit or bond.

1. time savings account or certificate of deposit that is renewed for another term at the prevailing interest rate.
2. profit-sharing plan, 401(k) plan, individual retirement account, or other type of deferred income plan that is reinvested within the permitted 60-day period, according to Internal Revenue Service Rules, in which assets may be transferred without tax penalty from one form of investment to another.
3. eurodollar term loan, which is periodically repriced at an agreed spread over a market index rate, usually libor.
4. Foreign Exchange. The sale and purchase of currency for one business day. These transactions take various forms, depending on the trade dates and delivery dates involved. If the trade is made today for delivery tomorrow, the transaction is an overnight rollover, usually involving money market instruments, for example, a repurchase agreement. Other rollover transactions include a spot next, a tomorrow next (tom next), and swap. See also short date forward.
5. Banking. To extend the maturity of, or to renew, a loan or obligation.

1. to replace a loan or debt with another.
2. to change the institution that invests one's pension plan, without recognition of taxable income.
3. see Individual Retirement Account (IRA) Rollover.

1. an important change in the date or another gradually increasing number, such as the date rollover from 1999 to 2000.
2. an explanatory note that appears as the mouse cursor is placed onto (rolls over) a key word, icon, or graphic even though the mouse has not been clicked. Rollovers are used by operating systems and application programs, but are especially common on web pages.

1. movement of funds from one investment to another. For instance, an Individual Retirement Arrangement may be rolled over when a person retires into an annuity or other form of pension plan payout system. Balances in regular IRAs can be rolled over into Roth IRAs, although income taxes will be due on untaxed earnings in the regular IRA account. When a bond or Certificate of Deposit matures, the funds may be rolled over into another bond or certificate of deposit. A stock may be sold and the proceeds rolled over into the same stock, establishing a different cost basis for the shareholder. See also thirty-day wash rule.
2. term often used by banks when they allow a borrower to delay making a principal payment on a loan. Also, a country that has difficulty in meeting its debt payments may be granted a rollover by its creditors. With governments themselves, rollovers in the form of refunding or refinancing are routine.

payment of an employee's employee benefit insurance plan benefits to the employee's Individual Retirement Account (IRA) or to another plan maintained by the employer.