What is the maximum time frame allowed for a tax-free rollover into a Traditional IRA?

The maximum time frame allowed for a tax-free rollover into a Traditional IRA is 60 days. This means that once you receive funds from a qualified retirement plan, such as a 401(k), you have a 60-day window to deposit those funds into a Traditional IRA to avoid any mandatory tax withholding or penalties.

If you miss this 60-day window, the Internal Revenue Service (IRS) typically considers the distribution from the original plan to be taxable income. In addition, if you are under age 59½, it may also trigger an early withdrawal penalty. It's important for individuals considering a rollover to be aware of this timeline to ensure they meet the IRS requirements and maintain the tax-deferred status of their retirement savings.

While quicker rollover processes may sound appealing, none of the other time frames provided (30, 90, or 120 days) are recognized by the IRS for tax-free rollovers into a Traditional IRA.