Before money moves,
understand the route.

First decide whether a move fits

An IRA rollover should follow a decision about costs, services, investments, and the features of the account you would leave. It should not begin with a form. Consider keeping an eligible employer plan or using a new employer plan when those options are available.

Ask your advisor to explain the recommendation and any compensation associated with the new account. Administrative convenience is useful, but it does not settle the broader question.

Know how the payment will travel

With a direct rollover from an employer plan, the payment goes to the receiving plan or IRA. An IRA trustee-to-trustee transfer moves assets between institutions. A payment made to you can instead create a time-sensitive rollover process.

An eligible employer-plan payment made to you is generally subject to 20% withholding and a 60-day rollover deadline. To roll over the full gross distribution, you generally need to replace the withheld amount with other funds. A direct rollover avoids that mandatory withholding.

The once-per-12-month limit generally applies to IRA-to-IRA 60-day rollovers across your IRAs. It does not apply to trustee-to-trustee transfers, plan-to-IRA rollovers, or Roth conversions. Confirm which transaction you are requesting.

Check the exceptions before signing

Not every distribution is eligible for rollover. Required minimum distributions, for example, cannot be rolled over. A receiving employer plan also is not required to accept a rollover. Obtain confirmation from both institutions.

Pre-tax savings and Roth savings need appropriate destinations. Moving untaxed money into a Roth account can create taxable income. Account ownership, after-tax amounts, and inherited accounts can raise additional questions; obtain transaction-specific guidance rather than treating every move alike.

Follow through after the transfer

Keep a copy of the instructions and confirmation. Verify that the correct account received the assets and that any cash is invested according to your decision. A completed transfer is not the same as a completed investment plan.

Review the new account’s beneficiary designation and retain the tax forms for your preparer. If something does not match the intended transaction, contact the institutions promptly. Do not assume a reporting difference will correct itself.