A rollover from a Traditional IRA to another IRA must be done within ___ days to avoid tax consequences

• A. 30
• B. 45
• C. 60
• D. 90

Answer: (C)

Moving funds from one traditional IRA to another must be completed within sixty days to keep it tax-free. If you take a distribution from an IRA and redeposit it into another IRA within sixty days, the IRS treats it as a rollover rather than a taxable withdrawal, so you don’t owe income tax (and, if you’re under 59½, you may avoid the early withdrawal penalty). If the rollover isn’t done within sixty days, the distribution becomes taxable for that year and could incur penalties.

The other day-count options don’t meet the rule, so they wouldn’t guarantee tax-free treatment. (Also, a direct trustee-to-trustee transfer avoids this window entirely because you don’t receive a distribution.)