IRA Rollovers and the 60-Day Rule: The Basics
Published November 6, 2026
A rollover lets you move retirement money from one plan to another without paying tax on it right away. The rules have a strict time limit. Publication 590-A explains them. This guide is general information. It is not advice about your return.
What a rollover is
Publication 590-A says a rollover is a distribution to you of cash or other assets from one retirement plan that is not taxed when you receive it. You then contribute that money to another retirement plan within 60 days after you received it. The contribution to the second plan is called a rollover contribution.
You can roll money into a traditional IRA from another traditional IRA. You can also roll it in from an employer's qualified retirement plan, a section 457 plan of a state or local government, or a section 403(b) plan. Publication 590-A lists these options.
Publication 590-A says an amount rolled over without tax is generally included in income when it is later paid out of the second plan. A rollover postpones tax. It does not remove it.
If your employer's plan pays you directly, the plan must give you a written explanation of rollover treatment. Publication 590-A says the plan must provide it. An IRA trustee does not have to give that notice.
The 60-day limit
You must generally make the rollover contribution by the 60th day after the day you receive the distribution. Publication 590-A gives an example. A distribution received on June 30, 2025 must be rolled over by August 29, 2025 to postpone including it in income.
The IRS may waive the 60-day requirement when missing it would be unfair. Publication 590-A gives examples, such as a casualty, a disaster, or another event beyond your reasonable control. It lists three ways to get a waiver: an automatic waiver, a self-certification, or a private letter ruling.
Publication 590-A also says you may be able to roll a traditional IRA distribution into a qualified plan. It gives examples of those plans.
You cannot deduct a rollover contribution
Publication 590-A says you cannot deduct a rollover contribution. You must still report the rollover distribution on your tax return. The publication explains how to report it for IRAs and for employer plans.
The one-year waiting period
Generally, if you make a rollover of any part of a distribution from a traditional IRA, you cannot make another rollover of a later distribution from that same IRA within a 1-year period. Publication 590-A says the same limit applies to the IRA you rolled money into.
A transfer made directly from one trustee to another is different. Publication 590-A says it is not a rollover. So the 1-year waiting period does not apply to it.
Publication 590-A says the same 60-day limit applies to rollovers from an employer's plan, so check the date on any plan payment you receive. Our guide to the traditional IRA deduction covers a different part of IRA rules. If you move money, the Form 1099-R shows the distribution. Our guide to the excess IRA contribution tax covers a related mistake to avoid.
Simple steps
- Write down the date you receive the money. The 60 days count from that day.
- Finish the rollover into the new plan before the 60th day. Do not wait for the last day. A late rollover may need an IRS waiver.
- Do not claim a deduction for the rollover contribution.
- Report the distribution and the rollover as Publication 590-A explains.
Upload your documents and answer a few simple questions. Your preparer reviews every deduction and credit and lets you know when your return is ready to sign.
Sources: Sources: IRS, Publication 590-A (2025), Contributions to Individual Retirement Arrangements (IRAs) (https://www.irs.gov/pub/irs-pdf/p590a.pdf) This is general information, not advice about your specific return.
