A rollover is a tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within a specific time frame, usually 60 days. An individual will commonly initiate a rollover after leaving a job at an employer who offered a retirement plan such as a 401(k) plan. Without specific instructions, the company will issue a check to the individual for the distributed amount minus 20% in withheld taxes. To avoid this penalty, the rollover must be done trustee to trustee, meaning that the check is requested to be made out to the new trustee or custodian of the rollover IRA. The company will provide the check and the participant must deposit the check into the new account within 60 days in order to avoid taxes and penalty.