Do all retirement plans allow for rollovers?

Not all retirement plans allow for rollovers due to varying regulations and rules associated with different types of plans. Rollovers typically refer to the process of transferring assets from one retirement account to another without incurring taxes or penalties.

Many types of retirement accounts, such as 401(k) plans, traditional IRAs, and some other qualified plans, generally allow for rollovers. However, certain plans, like non-qualified deferred compensation plans or some types of pensions, may not permit rollovers at all. Additionally, specific conditions must be met for rollovers to occur, such as the types of contributing entities, the nature of the accounts involved, and the timing of the distribution.

Thus, since there are multiple factors that determine whether a rollover is allowed, the correct answer highlights that it is not universally applicable across all retirement plans. This is an important aspect of retirement planning that individuals need to be aware of when considering how to manage their retirement assets.