What is an IRA rollover?

An IRA rollover is the process of moving retirement funds from an employer-sponsored plan (like a 401k) into an Individual Retirement Account (IRA). Done correctly, it's tax-free and gives you more control over your investments.

How long do I have to complete an IRA rollover?

You have 60 days from the date you receive a distribution to deposit it into another qualified account. Miss that window and the IRS treats it as taxable income — potentially with a 10% early withdrawal penalty if you're under 59½.

Is a direct rollover better than an indirect rollover?

Almost always, yes. A direct rollover (custodian-to-custodian transfer) means the money never touches your hands, so there's zero withholding and zero risk of missing the 60-day deadline. We always recommend going direct.

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What Even Is an IRA Rollover?

Let's start with the basics — because most articles skip straight to "here are 10 platforms" without explaining why any of this matters.

You have old retirement money

A 401k from a previous employer, a pension, a SIMPLE IRA — money that's sitting somewhere you no longer control.

You move it to an IRA

A rollover transfers that money into a new account you own and control — at a brokerage of your choosing. Done right, it's completely tax-free.

You invest it on your terms

Now you have access to more investment options, lower fees, and a cleaner picture of your total retirement savings.

The #1 Mistake Beginners Make

Taking the check instead of requesting a direct transfer. If your old employer writes you a check, they're required to withhold 20% for taxes — even if you plan to put it right back into an IRA. You then have 60 days to deposit the full original amount (including the withheld portion) or owe taxes and penalties. Always request a direct rollover.