Many of us have heard the term, 'rollover' before. In the financial world, it is commonly used in reference to the basic transfer of monies from a previous employer's 401k plan to an IRA or another 401k plan. In fact, a rollover can apply to more than 401k plans, and there are different types of rollovers. Yet, for the purpose of this article, let's keep it simple to understand the former. What a rollover accomplishes, is a transfer of value (cash not the investments), to a desired account platform. If done properly, it liquidates the former investments, transfers those investments to the new account, and avoids penalties or tax liabilities that would otherwise occur from a simple withdrawal or distribution of those assets.