Within how many days must a rollover from a Traditional IRA to another IRA be completed to avoid tax consequences?

• A. 60 days
• B. 30 days
• C. 90 days
• D. 120 days

Answer: (A)

The key idea is the 60-day rule for IRA rollovers. If you take a distribution from a Traditional IRA and redeposit those funds into another IRA within 60 days, the rollover is not taxed as a withdrawal, and you avoid penalties (assuming you meet any age-related exceptions). If you miss that 60-day window, the distribution is taxable as ordinary income, and if you’re under 59½, you could owe the 10% early withdrawal penalty as well. Direct rollovers (trustee-to-trustee transfers) avoid this timing issue because no distribution is paid to you, but indirect rollovers require you to complete the move within 60 days. The other day counts aren’t correct for this rule.