Direct vs Indirect IRA Rollover

Compare direct transfers and rollovers with distributions paid to you, including the 60-day rule.

Compare direct transfers and rollovers with distributions paid to you, including the 60-day rule. This guide is designed to help you identify the rules, costs, and decision points that matter before you contact a dealer or move retirement assets.

Direct rollover

For an eligible retirement-plan distribution, a direct rollover sends the payment to another retirement plan or IRA. The IRS says no taxes are withheld from the transfer amount in this route. IRS rollover guidance.

Trustee-to-trustee transfer

For IRA money, the current institution can send payment directly to another IRA or retirement plan. This is distinct from an IRA-to-IRA 60-day rollover.

60-day rollover

If money is paid to you, the general rule gives 60 days to redeposit an eligible amount. Certain plan distributions are subject to withholding, so rolling over the full amount can require replacing the withheld portion from other funds.

Do not choose a method based on marketing convenience

Choose the legally appropriate transaction type for your source account and destination account. A precious-metals dealer should not be your only source for tax guidance.