Most people know that an Individual Retirement Account is a type of savings plan intended specifically for retirement. Most of the time people have an IRA because they work for an employer who has setup a retirement plan for all their employees. There’s sort of a Master IRA Agreement which the employer signs with an insurance company or investment account, and under this master agreement each employee is assigned their particular IRA account. When a person gets a new job, they don’t want to leave their IRA account sitting at the old employer; they want to take the money with them. Most people know that because an IRA is meant for retirement, one of the rules is that if you take out money early you have to pay a penalty. There are other rules which say that if someone is moving is a company that was sponsoring the IRA, the person is allowed to move that money to another financial institution and under their own name. And that’s known as a rollover IRA because the money was not directly deposited but comes from another bank or financial institution.