While not a formal IRS-authorized Individual Retirement Account (IRA) option, many financial professionals use the term ‘rollover IRA’ to describe an IRA funded with savings that had been accumulated in employer-sponsored retirement plans, such as 401(k) plans, 403(b) plans and governmental 457(b) plans, or other IRAs.

A rollover IRA is established either as a traditional IRA or a Roth IRA and enjoys all the same tax benefits, including tax-deferred investment growth, as an IRA funded with annual contributions.