Can I move money between IRAs?

You can move money from one IRA to another IRA of the same type as a transfer or a rollover. The transaction is tax-free if it is properly done. Changing investments within your IRA does not constitute a transfer or rollover.

Transfer
To move the money between your IRAs using a transfer, instruct your financial organization to move the money directly to an IRA that you’ve established with another financial organization. The money in your account never actually passes through your hands. You can transfer all of the money in your IRA or only a portion, as many times as you want.

Rollover
To move the money in your IRA using a rollover, your financial organization distributes the amount of money you choose from your IRA to you. Even if you plan to roll over the assets, the distribution still is subject to federal withholding, unless you elect to waive withholding. Once you receive the money, you generally have 60 days to roll over the money to an IRA to avoid paying tax on it.

If you miss the 60-day deadline, you generally cannot put the money back into an IRA. If you took a distribution from a Traditional IRA, you will be subject to federal income taxes (excluding nondeductible contributions) and a 10 percent early distribution penalty tax if you are younger than age 59½ and you do not qualify for a penalty tax exception. If you miss the 60-day deadline on a Roth-to-Roth IRA rollover, you may be taxed and penalized on any amount that exceeds the contributions (i.e., basis) in your Roth IRA.

NOTE:  If you miss the 60-day deadline, IRS Revenue Procedure 2020-46 provides guidance on late rollover self-certifications and allowable reasons for the late contribution of a rollover. You should seek tax advice before completing a roll over after the 60-day deadline.