A more thorough explanation:

Definition: Rollover refers to extending a financial agreement, such as transferring funds from one retirement account to another or borrowing under the same facility to repay existing debt that is coming due.

• Retirement Accounts: Rollover often refers to transferring funds from one Individual Retirement Account (IRA) to another traditional IRA or Roth IRA, or from a qualified retirement plan into an IRA. This transfer is reported on an IRS Form 1099-R. Most retirement rollovers are tax-free events.
• Corporate Loans: In the context of corporate loans, a rollover can refer to a loan under a revolving credit facility to repay a maturing loan under that facility. In other words, a rollover is borrowing under the same facility to repay existing debt that is coming due.

For example, if you have a 401(k) retirement account with your current employer and you leave that job, you may choose to roll over the funds from your 401(k) into an IRA with a different financial institution. This is a tax-free event and allows you to continue saving for retirement with more control over your investment choices.

In the context of corporate loans, a company may have a revolving credit facility with a bank that allows them to borrow up to a certain amount of money. If a loan under that facility is coming due, the company may choose to borrow under the same facility to repay the existing debt. This is known as a rollover.

These examples illustrate how rollover can be used in different financial contexts to extend agreements and manage debt or retirement savings.