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The following is an excerpt from a document my broker sent me, I can't figure out the difference between these 2 options:

The heading is:
What's the Advantage of a Rollover IRA

1) No matter how your distribution end up in a Rollover IRA, it will be eligible to be rolled into a qualified plan-your next employer's 40(k) plan, for example - as long as you don't make contributions to the Rollover account.
// my interpretation - you can roll into the next plan as long as you don't add to it//

2) In contrast, if your distribution is deposited into a non-rollover IRA, you lose the ability to roll over the funds into another qualifid plan if you make contributions to the account. You will still be able to make annual contributions to this account.
//my interpretation - you can't roll it into the next plan if you add to it//

So, I'm guessing: ADDING TO A ROLLOVER, TURNS IT INTO A STANDARD? and A STANDARD is a ROLLOVER until you add to it??

What am I missing here? Is there really no such thing as a 'rollover IRA' is it just a term used to describe a traditional IRA that was funded by a rollover that is still eligeable to be rolled into a new employers plan? Any insight would be helpful.

As you could probably guess, I've got a 401(k) from an old employer. They say that I'll get the entire balance when I turn 65 if I don't roll it out into another employers' plan(or into an IRA).

Thanks!
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