Rollover guide
IRA Transfer vs Rollover
A trustee-to-trustee transfer moves IRA assets directly between institutions. A rollover can involve a plan-to-IRA direct rollover or a distribution that is later redeposited.
Trustee-to-trustee transfer
The IRS states that no taxes are withheld when an IRA institution transfers funds directly to another IRA or eligible plan, and this method is not subject to the one-rollover-per-year limit.
60-day rollover
When a distribution is paid directly to you, the IRS generally gives 60 days to deposit eligible funds into a qualifying account. Withholding can complicate the process, especially for retirement-plan distributions paid to you.
Direct rollover from a plan
A direct plan-to-IRA rollover avoids mandatory withholding on the transferred amount.
Tax caution: Verify your specific transaction with the plan administrator/custodian and an appropriate tax professional before moving retirement assets.