What is the difference between a transfer and a rollover?
A transfer moves money directly between two like accounts — IRA to IRA — without it being distributed to you. It is not reported as a distribution and is not limited in frequency.
A rollover is a distribution that is moved into an eligible retirement account. It comes in two forms: a direct rollover, where an employer plan sends the money to the receiving account, and an indirect rollover, where the money is paid to you and you must redeposit it within 60 days.
The words are not interchangeable. Which one a transaction is determines what is reported, what is withheld, what deadline applies and whether a frequency limit is in play.
Reviewed by Bay Area Wealth Advisors. Last reviewed 2026-09-16. Educational information only — not individualized financial, tax or legal advice.