Reviewed and updated October 16, 2026
Rules and decisions to review
- A direct rollover from an employer plan or a trustee-to-trustee IRA transfer generally reduces handling and timing risks.
- An eligible payment received personally generally must be rolled over within 60 days unless an exception applies.
- Employer-plan payments made to you can have mandatory withholding. To roll over the full eligible amount, you may need to replace the withheld money from another source.
- The once-per-year IRA rollover restriction applies to certain IRA-to-IRA rollovers, not all direct transfers. Required minimum distributions generally cannot be rolled over.
A practical example
If a plan distributes $20,000 with $4,000 withheld, depositing only the $16,000 received may leave $4,000 taxable. The eligible rollover amount and deadline must be checked before treating it as fully tax-deferred.
Records to gather
Gather distribution paperwork, receiving-account confirmation, dates, withholding and Forms 1099-R and 5498.
Your next step
Ask both account providers to confirm the transaction type, receiving-account eligibility and handling of withholding. Keep the transfer confirmation and reconcile the eventual tax forms even when the move is tax-deferred.
Official sources
This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.
