The One-Rollover-Per-Year Rule
You can make only one indirect IRA-to-IRA rollover in any 12-month period, and the limit applies across all of your IRAs combined, not to each account separately. Trustee-to-trustee transfers, rollovers from employer plans, and Roth conversions don't count. If you're moving IRA money into precious metals, a direct transfer sidesteps the rule entirely.
What the Rule Actually Says
Under the tax code and IRS guidance, if you receive a distribution from an IRA and roll it over to another IRA (or back into the same one), you can't make another such rollover from any of your IRAs for 12 months from the date you received the first distribution. The IRS explains the rule on its rollovers page and in Publication 590-A.
Two details often surprise people:
- It's 12 months, not a calendar year. A rollover of a distribution received in November blocks another until the following November.
- All IRAs are aggregated. Traditional, Roth, SEP, and SIMPLE IRAs are treated as one for this purpose. The limit used to be applied per account, but the U.S. Tax Court's 2014 decision in Bobrow v. Commissioner led the IRS to apply it on an aggregate basis starting in 2015.
Roth IRA rollovers count against the same single limit as traditional IRA rollovers, so you can't do one of each in the same 12 months.
What Is and Isn't Limited
| Type of move | Counts toward the limit? |
|---|---|
| Indirect rollover, IRA to IRA (money paid to you) | Yes |
| Trustee-to-trustee transfer between IRAs | No |
| Rollover from a 401(k), 403(b), governmental 457(b), or TSP to an IRA | No |
| Rollover from an IRA to an employer plan | No |
| Conversion from a traditional IRA to a Roth IRA | No |
This is why an IRA-to-IRA transfer is the usual way to move existing IRA money into a self-directed account that holds metals.
What Happens If You Break It
A second indirect IRA rollover within 12 months isn't a valid rollover. The consequences can stack up:
- Taxable distribution. The second distribution is generally included in income (minus any nondeductible basis).
- Possible 10% additional tax. If you're under the IRS-defined age, the early-distribution tax may apply unless an exception covers you; see the IRS early distributions page.
- Excess contribution. If you deposited the money into an IRA anyway, it may be an excess contribution subject to a 6% excise tax each year until it's corrected.
Fixing this usually means withdrawing the excess and its earnings before the tax-filing deadline. A tax professional can help with the correction. Note that the 12-month limit is separate from the 60-day deadline: each indirect rollover must also be completed within 60 days of receipt, as explained in the 60-day rollover rule.
How the Rule Trips People Up
A few realistic scenarios:
- Short-term borrowing. Someone takes an IRA distribution as a short-term loan to themselves, redeposits it within 60 days, then repeats the move a few months later. The second redeposit fails.
- Consolidating several IRAs. Someone asks three old IRA custodians to mail checks to them, planning to deposit all three into a new self-directed IRA. Only one of those can be a valid rollover in a 12-month window. Transfers between custodians would have avoided the problem.
- Forgetting an earlier rollover. An indirect rollover earlier in the year at a different custodian still counts.
Keeping Track Across Custodians
Because the limit spans all your IRAs, no single custodian can tell you whether you're within it. Each custodian sees only its own accounts. Keeping a simple log helps: the date you received each IRA distribution, the amount, whether it was redeposited, and where. Form 1099-R from the paying custodian and Form 5498 from the receiving custodian document each rollover after the fact; see rollover paperwork and forms.
Using This When Moving Into Metals
If you plan to combine several IRAs into one self-directed account holding gold or silver, request each move as a trustee-to-trustee transfer. The receiving custodian typically sends a separate transfer request to each current custodian. You can do as many of these as you need. Our guide to trustee-to-trustee transfers explains the mechanics, self-directed IRA basics covers the receiving account, and direct vs indirect rollovers compares the routes.
Goldco is a precious metals company that offers gold and silver for IRAs funded by transfer or rollover. It says it works with all major self-directed IRA custodians. Its precious metals specialists can explain transfer paperwork but are not licensed to give tax advice. See the Goldco rollover and transfer process.
Frequently Asked Questions
Does the limit apply to moving 401(k) money into gold?
No. Rollovers from employer plans to IRAs are not limited by this rule, whether direct or indirect.
Can I make unlimited transfers into a metals account?
Yes. Direct trustee-to-trustee transfers between IRAs are not limited.
When does the 12-month period begin?
On the date you received the IRA distribution that you rolled over, not the date you redeposited it.
Is a Roth conversion a rollover for this rule?
No. Conversions from traditional to Roth IRAs are not counted.