Yes, you can move your IRA to another bank, and the process has specific rules that protect your money from taxes

You can transfer an IRA from one bank to another without paying taxes or penalties, but the mechanics matter. The money must move directly from the old institution to the new one—if it passes through your hands, even briefly, the IRS treats it as a withdrawal and you may owe income tax on the full amount plus a 10% penalty if you're under 59½. The difference between a direct transfer (institution to institution) and a rollover (you receive the check) is the single most important thing to understand before you start.

Banks don't charge you to leave, though some charge a fee to close the account. The new bank may charge a transfer fee, or may waive it to attract your business. The whole process typically takes five to ten business days, though it can stretch longer if the old bank is slow to respond or if your IRA holds investments that need to be liquidated first.

Key Takeaways

  • A direct transfer from one bank to the other avoids taxes and penalties; a rollover where you handle the check yourself can trigger a 10% penalty and income tax if you're under 59½.
  • You initiate the transfer by contacting your new bank and providing your old account details; the banks handle the rest directly.
  • The process takes five to ten business days in most cases, longer if your IRA holds mutual funds or other investments that must be sold first.
  • You can transfer between any IRA type (Traditional to Traditional, Roth to Roth) without restriction, but moving money between types (Traditional to Roth) is a taxable conversion, not a transfer.

Direct transfer versus rollover: why the distinction matters

A direct transfer means the old bank sends the money straight to the new bank. You never touch it. The IRS does not count this as a distribution, so no tax bill arrives and no penalty applies, regardless of your age. This is the safest route and the one you should choose whenever possible.

A rollover means the old bank sends you a check (or deposits the money to your personal account). You then have 60 calendar days to deposit that money into the new IRA. If you miss the important date or spend any of it, the IRS treats the full amount as a taxable withdrawal. If you're under 59½, you also owe a 10% early withdrawal penalty on top of the income tax. The 60-day window is strict—the IRS does not grant extensions.

Some people use rollovers intentionally when they want to borrow from their IRA temporarily (the 60-day window acts as an interest-free loan), but this is risky. If you miss the important date by even one day, the consequences are permanent and cannot be undone by filing an amended return.

How to start a direct transfer

Contact the new bank and tell them you want to transfer an existing IRA into a new account with them. They will ask for the name and address of your current bank, your old account number, and the account holder's name and Social Security number. Some banks provide a form called an IRA transfer request form that you sign; others handle it entirely over the phone.

The new bank then contacts your old bank directly and requests the transfer. You do not need to call your old bank yourself, though you can if you want to notify them that the transfer is coming. The old bank has no legal right to refuse a direct transfer to another IRA account in your name, though they may charge a fee (typically $25 to $100) for processing it.

Once the transfer is initiated, check in with the new bank after five business days. If the money has not arrived, call and ask for the status. Delays usually mean the old bank is waiting for you to liquidate investments (if your IRA holds mutual funds or stocks) or is processing a high volume of transfers. A week to ten days is normal; anything longer than two weeks warrants a follow-up call.

What happens to investments during a transfer

If your IRA holds cash, the transfer is straightforward—the money moves and arrives within days. If it holds mutual funds, stocks, or other securities, the old bank must sell those positions first, which adds time and may expose you to market movement. A fund that costs $10,000 when you initiate the transfer might be worth $9,800 by the time it sells, depending on market conditions.

Some banks offer in-kind transfers, meaning they move the actual securities (not the cash) to the new bank. This avoids the sale and any market risk, but not all banks support it, and not all investments can move this way. Ask your new bank whether they accept in-kind transfers before you start the process. If they do, ask your old bank to transfer the securities directly rather than liquidating them.

Transfers between different IRA types

You can transfer a Traditional IRA to another Traditional IRA, or a Roth IRA to another Roth IRA, with no tax consequence. The money stays in the same tax category and the rules do not change.

Moving money from a Traditional IRA to a Roth IRA is not a transfer—it is a conversion, and it is taxable. You owe income tax on the full amount converted in the year you do it. The IRS does not prevent conversions, but they are a separate transaction with separate tax consequences. If you are considering this, speak with a tax professional first, because the tax bill can be substantial.

Fees and what to watch for

Your old bank may charge a transfer fee ($25 to $100 is typical) for processing the outgoing transfer. Your new bank may charge an incoming transfer fee, or may waive it as part of a promotion to attract new customers. Ask both banks about their fees before you start, so there are no surprises.

Some banks charge an annual IRA maintenance fee ($10 to $50) just for holding the account. If your old bank charges this and your new bank does not, the transfer saves you money over time. If it is the reverse, factor that into your decision.

Watch for banks that try to pressure you into buying their investment products during the transfer. A bank can suggest options, but they cannot require you to invest in their mutual funds or managed accounts as a condition of opening an IRA. You can hold cash, stocks, bonds, or mutual funds from any provider in most IRAs.

Timing and what to expect after the transfer completes

Once the money arrives at the new bank, it sits in a cash holding account until you direct it into an investment. You are not required to invest it when ready. Some people transfer to a new bank specifically to move from one investment strategy to another, so they may hold cash for a few days while they decide what to buy.

The old bank will close your IRA account once the transfer is complete. You should receive a final statement showing a zero balance. Keep this statement for your records—it documents that the transfer happened and that you did not take a distribution.

The new bank will send you account statements and tax documents (Form 5498) going forward. Make sure your address is correct on file so you receive these documents. The IRS uses Form 5498 to track IRA contributions and conversions, so accuracy matters for your tax return.

Frequently Asked Questions

Can I transfer my IRA if I have an outstanding loan against it?

No. If your IRA has a loan, you must repay it in full before transferring. The loan is typically tied to the old account and cannot move with the money. Contact your old bank to learn the loan balance and repayment terms.

What if my old bank refuses to process the transfer?

Banks are legally required to honor direct transfer requests to another IRA in your name. If yours refuses, contact the bank's compliance department in writing and reference the IRS rules on direct transfers. If they still refuse, you can file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau.

Do I have to transfer the entire IRA, or can I move just part of it?

You can transfer part of an IRA and leave the rest at the old bank. Tell the new bank the amount you want to transfer, and they will request that specific amount from the old bank. The old account remains open with the remaining balance.

How often can I transfer my IRA?

You can do direct transfers as often as you want—there is no limit. The 60-day rollover rule (one rollover per 12 months) applies only to rollovers where you handle the check yourself, not to direct transfers between institutions.

Will the transfer affect my contribution limit for the year?

No. A transfer is not a contribution. It does not count toward your annual contribution limit, and it does not trigger any reporting requirements beyond what the banks handle automatically.