What is the dollar amount limit on rollover contributions to an individual retirement account (IRA)?

The correct answer is that rollover contributions to an individual retirement account (IRA) are unlimited by dollar amount. When you perform a rollover, you are transferring funds from one qualified retirement account to another, such as from a 401(k) to an IRA. This process does not impose a specific dollar cap on the amount you can roll over.

Rollover contributions can include the full balance of an account, provided they follow certain IRS guidelines. However, it's important to note that any amounts you roll over must be part of a qualified transaction. This means that to avoid penalties or taxes, the rollover must be completed within a specific time frame (typically 60 days).

The other options suggest fixed maximum contributions, which apply to regular contributions to an IRA rather than rollover contributions. For instance, there are annual contribution limits for regular IRA contributions, but these do not apply when it comes to rolling over funds from another eligible retirement plan. Hence, the concept of "unlimited" in the context of rollovers is accurate based on IRS regulations.