The 60-day rule is the trickiest part of any indirect rollover. Here is exactly how it works.
What is the 60-day IRA rollover rule?
When you take an indirect rollover, the IRS gives you 60 calendar days from the date you receive the funds to deposit them into an IRA or qualified plan. Meet the deadline and the rollover is tax-free; miss it and the entire amount becomes a taxable distribution, with a possible 10% penalty if you are under 59 1/2. The 60 days are calendar days, not business days, and include weekends and holidays. The clock starts when you receive the money, not when the check is dated. A direct rollover avoids this deadline entirely. For help, call 1-800-MEDIGAP at 1-800-633-4427.
The once-per-year limit and waivers
The IRS also limits you to one indirect IRA-to-IRA rollover per rolling 12-month period across all your IRAs. Direct rollovers, trustee-to-trustee transfers, and Roth conversions do not count toward this limit. If you miss the 60-day deadline for a valid reason, such as serious illness, a financial-institution error, or a misplaced check, you may be able to self-certify for a waiver, though approval is not guaranteed. The simplest way to avoid every one of these complications is to use a direct rollover, which has no deadline and no annual limit.