What is the difference between an IRA-to-IRA rollover and an IRA-to-IRA transfer?
An IRA-to-IRA rollover is when you withdraw all or part of the amounts in your Roth IRA and then reinvest those amounts within 60 days into the same or another Roth IRA. There are, however, restrictions on IRA-to-IRA rollovers. You may only roll over one distribution from each Roth IRA every 12 months. There is also a 12-month waiting period before you can make a tax-free rollover of any amount distributed from the IRA into which you made the tax-free rollover. The 12-month waiting period begins on the date you receive the Roth IRA distribution, not on the date you roll it over into a Roth IRA. Alternatively, you may move your Roth IRA from one custodian/trustee to a Roth IRA maintained by another custodian/trustee by requesting a direct transfer. Federal law does not limit the number of transfers you may make during any year.
