A rollover is moving funds from one retirement savings account or plan, like an old IRA or 401K, to a new or consolidated IRA. Rollovers from an IRA are subject to federal income tax unless you complete the transaction within 60 days of receiving the funds. Also, IRAs can be part of a tax-free rollover only once in a single calendar year. This means, if you make a tax-free rollover of a distribution from an IRA, you can’t make another rollover from the same IRA within that same year.
A direct rollover is when funds are moved from your workplace retirement plan directly to your IRA. Since you never hold the funds, there are no taxes withheld.
A trustee-to-trustee transfer is moving funds from one IRA to another IRA. The money is transferred directly from one IRA to another on your behalf. Transfers can take place as often as you like, and they are not taxable.
We recommend you work with a tax professional to help you make the best decision for your retirement goals.