The two ways to move an IRA, and why the method matters

You can move an IRA from one bank to another in two ways: a direct transfer (also called a trustee-to-trustee transfer) or a rollover. A direct transfer moves money straight from the old bank to the new one without you touching it. A rollover means the old bank sends you a check, and you deposit it yourself within 60 days. Direct transfers are simpler and safer—there's no 60-day important date to miss, no tax withholding, and no risk of accidentally triggering a taxable event. Most people should use a direct transfer.

The bank you're moving to handles most of the work. You'll start the process there, not at your current bank. The new bank will contact your old bank on your behalf, request the account details, and coordinate the move. Your job is to provide account information and sign paperwork—usually just one form.

Key Takeaways

  • A direct transfer sends money straight from your old IRA to your new one with no tax withholding or 60-day important date, and is the safer choice for most people.
  • Start the process at the new bank, not the old one—the new bank will request your account details and contact your old bank directly.
  • You'll need your old IRA account number, the name of your current bank, and the type of IRA (Traditional or Roth) to begin.
  • Direct transfers typically take 5 to 10 business days, though some banks take longer; your old account may stay open briefly after the move completes.
  • If you receive a check instead of using a direct transfer, you have 60 days to deposit it or face taxes and penalties on the full amount.

What you need before you start

Gather three pieces of information before contacting your new bank. First, your old IRA account number—you'll find this on your most recent statement or in your online account. Second, the name of your current bank or financial institution (the one holding the IRA now). Third, confirm whether you have a Traditional IRA or a Roth IRA—this matters because you cannot mix the two types in a single transfer, and the tax treatment differs.

You do not need to contact your old bank first. In fact, calling them before you've started the process at the new bank often creates confusion. The new bank's transfer team knows the steps and will reach out to your old bank with the right paperwork.

Starting a direct transfer at your new bank

Call the new bank's IRA department or visit their website and look for a link labeled "Transfer an IRA" or "Move Your IRA Here." You'll be asked to fill out a form—usually called an IRA Transfer Request or IRA Rollover Form—that includes your old account number, the old bank's name, and your contact information. Some banks let you start online; others require a phone call or a visit to a branch.

The new bank will ask whether you want a direct transfer or a rollover. Choose direct transfer. If the form offers options for what to do with the money (keep it in cash, invest it, etc.), you can usually decide that later—the transfer itself doesn't require you to commit to an investment choice right away.

Once you submit the form, the new bank's transfer team takes over. They will contact your old bank, request your account details, and coordinate the move. You may receive a confirmation number or reference ID—keep this in case you need to follow up.

What happens while the transfer is in progress

A direct transfer typically takes 5 to 10 business days from the time the new bank submits the request to your old bank. Some banks move faster; others take up to three weeks. During this time, your money is in transit between the two institutions. You can usually still see it in your old account until the transfer completes.

Your old bank may freeze your account during the transfer to prevent you from withdrawing money while it's being moved. This is normal. Once the transfer completes, the old account will show a zero balance. Some banks close the account automatically; others leave it open but empty. If you want the old account closed, you can contact the old bank after the transfer finishes, though this is not required.

The new bank will notify you when the money arrives. Check your new account to confirm the balance is correct and matches what you had at the old bank.

If you receive a check instead (the rollover method)

If your old bank sends you a check rather than transferring directly, you have exactly 60 calendar days to deposit it into your new IRA. This 60-day window is strict—if you miss it, the IRS treats the money as a withdrawal, which means you'll owe income tax on the full amount plus a 10% early withdrawal penalty if you're under 59½.

The check will be made out to a custodian or trustee account, not to you personally. Deposit it into your new IRA account at the new bank. Do not cash it or deposit it into a regular checking account. If you're unsure where to deposit it, call the new bank and ask for instructions.

Keep records of the deposit—a bank receipt or screenshot of the transaction—in case the IRS ever questions the timing. The 60-day clock starts the day you receive the check, not the day you open the envelope.

Moving between different IRA types (Traditional to Roth, or vice versa)

If you're converting a Traditional IRA to a Roth IRA at a new bank, the process is similar, but the tax consequences are different. A Traditional-to-Roth conversion is a taxable event—you'll owe income tax on the amount converted in the year you do it. The transfer itself works the same way (direct transfer or rollover), but you should consult a tax professional before starting to understand your tax bill.

You cannot move a Roth IRA into a Traditional IRA and treat it as a transfer. The IRS does not allow that direction of conversion. If you want to move a Roth to a different bank, use a direct transfer between two Roth accounts.

Common delays and what causes them

The most common reason for a delayed transfer is incomplete or incorrect information on the form. If you wrote down the wrong account number or misspelled the old bank's name, the transfer team will have to contact you to correct it. Double-check your old account number before submitting the form.

Some banks take longer than others. Credit unions, in particular, sometimes move slower than large national banks because they process transfers manually rather than electronically. If your transfer hasn't completed after three weeks, contact the new bank's transfer team with your confirmation number and ask for a status update.

If your old bank has flagged your account for any reason (suspected fraud, a recent large deposit, or an unresolved issue), they may hold up the transfer while they investigate. This is rare but can add days or weeks. The new bank's transfer team can usually tell you if this is happening.

Frequently Asked Questions

Can I transfer an IRA if I've already taken a distribution from it this year?

You can do a direct transfer at any time. If you've taken a distribution and received a check, you can still deposit that check into a new IRA within 60 days of receiving it. However, you're limited to one rollover per IRA per 12-month period, so plan carefully if you've already done a rollover this year.

What if my old bank charges a fee to close the IRA?

Some banks charge a closure or transfer fee, usually $25 to $100. Ask your old bank about this before starting the transfer. The fee will typically be deducted from your account, so your new bank will receive slightly less than your old balance. This is legal, though some banks waive the fee if you ask.

Do I have to invest the money right away after it arrives at the new bank?

No. The money can sit in a cash holding account at the new bank for as long as you need. You can decide later where to invest it. However, while it's in cash, it earns little to no interest, so most people move it to an investment within a few days.

Can I transfer an IRA if I'm over 73 and taking required minimum distributions?

Yes, you can transfer an IRA at any age. However, if you're required to take a minimum distribution that year, you must take it before or after the transfer—it cannot come from the transferred funds. Coordinate with both banks to make sure the distribution is taken from the correct account.

What if the new bank loses the transfer paperwork?

This is rare, but if it happens, contact the new bank's transfer team when ready with your confirmation number. They can resubmit the request. Keep copies of everything you signed and submitted. If weeks pass with no progress, ask to speak with a supervisor or file a complaint with your state's banking regulator.