Rollover refers to the transfer of funds from one retirement plan to another. This is normally tax free and for being such the transfer has to be between two qualified retirement funds or from one fund to an IRA
IRA stands for Individual Retirement Account and it allows individuals to make contributions towards an account in a tax deferred manner.
What this means is that individuals will not be taxed on the amount that they deposit in an IRA or the income generated from it till the time that they withdraw the money from their IRA. There is a certain maximum limit of the contribution and age restrictions for the individual who can contribute to an IRA.