If you move IRA money in the United States, two rules shape the outcome: the 60-day rollover window and the one-per-year rollover limit. These guardrails determine whether a distribution you receive can be redeposited without current income tax. They also influence how you coordinate multiple accounts, consolidate providers, or refine your investment lineup. All references in this article assume U.S. rules and U.S. dollars (USD).

Finance services: What the 60-day rule means

The 60-day rule applies when you use an indirect rollover—money is paid to you, then you redeposit the same amount into the same or another IRA within 60 calendar days. Miss the deadline and the distribution is generally taxable, and if you are under age 59½, a 10% early distribution penalty may also apply. Any amount withheld for taxes counts as part of the distribution, so to keep the full sum tax-deferred, you must replace withheld dollars from other funds within the 60 days. For IRAs, federal income tax withholding is typically voluntary (often 10% by default unless you opt out); for employer plans, mandatory 20% withholding applies, which is one reason many investors prefer direct transfers. Inherited IRAs for non-spouse beneficiaries cannot use the 60-day method; they must be moved by direct trustee-to-trustee transfer. Keep dated confirmations and mailing proofs, and consider using local services in your area for recordkeeping help.

Investment management implications

From an investment management perspective, indirect rollovers can force assets out of the market while you hold a check, creating performance drift if markets move. A direct trustee-to-trustee transfer avoids the 60-day rule entirely because funds never pass through your hands and usually remain invested or move quickly between like investments. If you receive a check, confirm settlement timelines at the receiving custodian, deposit promptly, and track the posting date. Document tickers, share counts, and cash amounts so you can reconcile balances and demonstrate compliance if questions arise later.

Financial planning and the one-per-year limit

The one-per-year rollover limit applies to indirect IRA-to-IRA rollovers only. You can perform just one such rollover in any 12-month period measured from the date you receive the distribution—not by calendar year. The limit is per person and aggregates across your traditional, Roth, SEP, and SIMPLE IRAs. It does not apply to direct trustee-to-trustee transfers, rollovers from employer plans to IRAs, rollovers from IRAs back to employer plans (if the plan accepts them), or conversions from traditional IRAs to Roth IRAs. Exceeding the limit makes the later distribution taxable; if you redeposit it, that redeposit becomes an excess contribution subject to potential excise taxes until removed. Good financial planning maps all account moves on a timeline, ensuring any additional repositioning within the same 12 months is executed as direct transfers.

Insurance solutions and risk control

Insurance solutions do not change rollover rules or deadlines, but risk management can still help. Consider how you would handle an unexpected tax bill if a rollover fails; some households maintain a cash reserve for contingencies. If a paper check is issued, use trackable delivery and keep copies. Understand coverage limits for any temporary cash balances during the move—SIPC at brokerages and FDIC at banks protect against institutional failure, not market loss. If life or disability insurance is part of your broader plan, update assumptions to reflect potential taxes if a rollover is missed; treat insurance as a backstop, not a substitute for following IRS procedures.

Wealth management: Transfers vs rollovers

Wealth management practices often default to direct transfers because they bypass both the 60-day deadline and the one-per-year limit. They also reduce administrative friction and help keep portfolios aligned with strategy. Indirect rollovers may still occur when consolidating legacy accounts or when a provider issues a check by default. Confirm the transaction type before requesting a distribution, especially late in the year, because required minimum distributions (RMDs) cannot be rolled over and must be taken first when applicable. If you already completed one indirect rollover within the past 12 months, structure any additional moves as direct transfers. When genuine obstacles prevent meeting the 60-day requirement—such as errors by a financial institution—the IRS provides limited relief through a waiver or self-certification process; acceptance depends on facts and is not assured. Preserve detailed records to support your case.

Conclusion The 60-day rule governs how long you can hold IRA funds before redepositing them, while the one-per-year limit restricts how often you can perform indirect IRA-to-IRA rollovers. Because direct trustee-to-trustee transfers fall outside both constraints and minimize market and paperwork risks, many U.S. investors treat them as the standard approach. With clear documentation, awareness of the 12-month measurement, and USD-focused planning for any potential tax exposure, you can move retirement accounts while maintaining tax deferral.