Yes, you can move your IRA to another bank or brokerage—and you have two ways to do it

You can transfer an IRA from one financial institution to another without closing the account or triggering taxes. The two methods are a direct transfer (also called a trustee-to-trustee transfer), where the old institution sends money straight to the new one, and an indirect rollover, where you receive the money yourself and deposit it within 60 days. Direct transfers are simpler and safer because the IRS doesn't count them as a distribution. Indirect rollovers carry more risk: if you miss the 60-day window or deposit the money into the wrong account type, you'll owe taxes and penalties on the full amount.

The choice between these two methods matters because it affects your timeline, your risk of error, and how much control you have over the process. Most people should use a direct transfer. An indirect rollover makes sense only if you need temporary access to the money or if your new institution requires it for some reason.

Key Takeaways

  • A direct transfer moves money from your old IRA custodian straight to your new one, with no tax consequences and no 60-day deadline to meet.
  • An indirect rollover puts the money in your hands for up to 60 days, but missing that window means the full amount becomes taxable income plus a 10% early withdrawal penalty if you're under 59½.
  • You can do a direct transfer as many times as you want, but you're limited to one indirect rollover per IRA per year across all your IRAs combined.
  • The receiving institution handles most of the paperwork; you typically just sign a form authorizing the transfer and provide your new account details.
  • Your old custodian may charge a fee to close the account, and your new one may charge a fee to receive the transfer—ask both before you start.

How a direct transfer works and why it's the safer choice

In a direct transfer, you contact your new bank or brokerage and tell them you want to move an IRA from another institution. They will give you a transfer form to sign—usually called an IRA transfer request or trustee-to-trustee transfer authorization. You fill in your old custodian's name and your account number there, sign the form, and send it back to the new institution. The new institution then contacts your old one directly and requests the funds.

Your old custodian has no choice but to comply. They will liquidate your investments if necessary (which may trigger a small taxable gain or loss within the IRA, but not a distribution to you), and send the cash or securities to your new custodian. The whole process usually takes 7 to 14 business days, though it can stretch to 30 days if your old custodian is slow or if you hold individual securities that take time to transfer. You never touch the money, so there's no tax bill and no deadline to meet.

Direct transfers are unlimited—you can do as many as you want in a year. This matters if you're moving money between multiple institutions or if you change your mind and want to move it again later. Because the IRS doesn't count direct transfers as distributions, they don't trigger the one-per-year rollover limit that applies to indirect rollovers.

How an indirect rollover works and what can go wrong

An indirect rollover means your old custodian sends the money to you, not to your new institution. You then have 60 calendar days to deposit that money into an IRA at your new institution. If you deposit it on day 61, the IRS treats the entire amount as a distribution, which means you owe income tax on it plus a 10% early withdrawal penalty if you're under 59½.

The 60-day clock starts the day you receive the check or the funds hit your bank account, not the day you request the transfer. If your old custodian mails you a check and it takes five days to arrive, your 60 days began when it arrived, not when they sent it. This is why indirect rollovers are risky: mail delays, bank processing times, and simple oversight can cost you thousands in taxes. You also cannot stop the clock or ask for an extension—the deadline is fixed.

You are also limited to one indirect rollover per IRA per year. The IRS counts this across all your IRAs combined—so if you have a traditional IRA and a Roth IRA, you can do only one indirect rollover total in a 12-month period, not one per account. If you exceed this limit, the second rollover is treated as a taxable distribution. Direct transfers do not count toward this limit, so you can do unlimited direct transfers and still have your one indirect rollover available if you need it.

Fees and what to expect from each institution

Your old custodian may charge a fee to close your account or process the transfer—this varies widely, from nothing to $100 or more. Some institutions waive the fee if you're transferring a large balance. Your new institution may also charge a fee to receive the transfer, though many waive this to attract new customers. Ask both institutions about their fees before you start the process.

If your old custodian charges a fee and you're doing a direct transfer, that fee typically comes out of your IRA balance before the money is sent to your new institution. If you're doing an indirect rollover and you receive a check, the fee may be deducted from the check amount, or you may be billed separately. Either way, the fee reduces the amount you can roll over, so factor this into your decision. Some custodians will also charge you a fee if you hold individual securities (stocks, bonds, mutual funds) that they have to transfer in kind rather than liquidate and send as cash.

Before you commit to a transfer, call both your old and new custodian and ask for their fee schedule in writing. Ask specifically whether they charge for processing a transfer, closing an account, or transferring securities in kind. Some institutions will waive fees if you ask, especially if you're moving a large balance or if you're a long-term customer.

What happens to your investments during the transfer

In a direct transfer, your investments stay invested the entire time. Your old custodian may need to liquidate some holdings to send cash, but this happens behind the scenes and you don't have to do anything. If you hold individual securities, many custodians can transfer them in kind—meaning the actual shares move to your new institution without being sold. This avoids triggering a taxable gain or loss within the IRA.

In an indirect rollover, your old custodian typically liquidates everything and sends you cash. This means you're out of the market for however long it takes you to receive the money and deposit it at your new institution. If the market rises during those two weeks, you miss the gain. If it falls, you avoid the loss—but you can't count on that. Some custodians will let you request that they hold your investments and transfer them in kind instead of liquidating, but this is less common and may take longer.

Once your money arrives at your new institution, it will sit in a cash or money market account until you direct them to invest it. You are responsible for reinvesting it—the new custodian will not do this automatically. If you want to buy the same investments you held before, you can do that immediately. If you want to change your strategy, now is the time to do it. Don't leave the money sitting in cash for weeks—the longer it sits uninvested, the more opportunity cost you incur.

Moving money between different IRA types

You can transfer a traditional IRA to another traditional IRA with no tax consequences. You can also transfer a Roth IRA to another Roth IRA. But converting a traditional IRA to a Roth IRA is not a transfer—it's a conversion, and it triggers a tax bill on the amount you convert. A transfer form will not work for this; you need to use your custodian's conversion process instead.

If you receive an indirect rollover from a traditional IRA and you want to deposit it into a Roth IRA instead, the IRS treats this as a conversion, not a rollover. You will owe income tax on the full amount. This is a common mistake: people receive a check from their old custodian and deposit it into a Roth at their new institution, thinking they've done a rollover, only to discover later that they owe taxes. Always confirm with your new custodian which account type you're depositing into before you send the money. If you're unsure, call the new custodian and ask them to confirm in writing.

Steps to take before you start the transfer

First, open an IRA at your new institution if you don't already have one. You'll need the account number to provide on the transfer form. Second, confirm with your new custodian that they can accept the type of IRA you're transferring (traditional, Roth, SEP, or SIMPLE) and that they can hold any investments you own. Some smaller banks and brokerages have restrictions on what they can accept.

Third, ask your old custodian whether they charge a fee and what it is. Ask your new custodian the same thing. Fourth, decide whether you want a direct transfer or an indirect rollover. Direct transfer is almost always the better choice unless you have a specific reason to handle the money yourself. Fifth, request the transfer form from your new institution, fill it out, and send it back. Then wait for the money to arrive—check your new account after two weeks to see if it's there, and follow up with your old custodian if it hasn't shown up after 30 days.

What to do if something goes wrong

If you're doing an indirect rollover and you miss the 60-day deadline, you have limited options. You can request a waiver from the IRS if you have a good reason for the delay—illness, a natural disaster, or a mistake by your bank or custodian. You'll need to file Form 8329 with your tax return and explain why you missed the deadline. The IRS grants waivers in some cases but not all, so this is not a reliable backup plan.

If your old custodian loses the transfer form or doesn't process it, follow up in writing. Send an email or letter asking for confirmation that they received your request and when they expect to send the money. Keep copies of everything. If they continue to delay beyond 30 days, contact your state's banking regulator or the Securities and Exchange Commission (SEC) if your custodian is a brokerage. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB).

If your new custodian receives the money but deposits it into the wrong account type, contact them immediately and ask them to move it to the correct account. If they refuse or if the money was already invested, you may need to do a correction rollover or file an amended tax return. This is rare but possible, so always confirm the account type before the money arrives and get written confirmation from the new custodian about which account they will deposit into.

Frequently Asked Questions

Can I transfer my IRA if I have a loan against it?

No. If you have borrowed money from your IRA under a loan program offered by your custodian, you cannot transfer the IRA until the loan is repaid. The loan must be paid back in full before the transfer can proceed. Contact your custodian to find out the payoff amount and deadline.

What if my old custodian won't process the transfer?

They are required by law to process a direct transfer request. If they refuse, contact your state's banking regulator or the SEC. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB). In the meantime, you can request an indirect rollover instead, though this carries more risk.

Do I have to transfer all my money, or can I move just part of it?

You can transfer part of your IRA balance and leave the rest at your old custodian. Just specify the amount on the transfer form. This is useful if you want to consolidate some accounts but keep others where they are, or if you want to test a new custodian before moving everything.

How long does a transfer take?

A direct transfer usually takes 7 to 14 business days, though it can take up to 30 days depending on how quickly your old custodian processes the request and how your new custodian receives the funds. An indirect rollover depends on how fast your old custodian mails the check and how fast your bank processes the deposit—typically 5 to 10 business days, but you have 60 days total to complete it.

Will transferring my IRA affect my taxes?

A direct transfer has no tax consequences. An indirect rollover also has no tax consequences if you deposit the money into an IRA of the same type within 60 days. If you miss the deadline or deposit into a different IRA type (like converting traditional to Roth), you will owe income tax on the amount that doesn't go into an IRA within 60 days.