Updated October 24, 2026. Quick answer: Tax Topic 413 is the IRS page on rollovers from retirement plans. A rollover moves money from one eligible retirement plan to another within 60 days and is not taxable, but it is reportable on your federal tax return. The topic also lists distributions that cannot be rolled over and explains mandatory withholding.
Quick reference
| Item | What the IRS topic says |
|---|---|
| What a rollover is | “A rollover occurs when you withdraw cash or other assets from one eligible retirement plan and contribute all or part of it, within 60 days, to another eligible retirement plan.” |
| Tax treatment | “This rollover transaction isn’t taxable” |
| Reporting | “it is reportable on your federal tax return.” |
| Deadline | “you have 60 days from the date you receive it to roll it over to another eligible retirement plan.” |
| Withholding | “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later.” |
| Direct rollover | “Mandatory withholding doesn’t apply to a direct rollover.” |
What can and cannot be rolled over
The topic gives a list that starts with “Certain distributions from an eligible retirement plan can’t be rolled over, including:” Three items on the list are “A required minimum distribution;” and “A hardship distribution from an employer retirement plan;” and “Dividends paid on employer securities; or”
After tax money has its own rule. The topic says “You may be able to roll over the nontaxable part of a distribution (such as your after-tax contributions) to another qualified retirement plan that is a qualified employee plan or a 403(b) plan, or to a traditional or Roth IRA.” See also our page on whether a pension annuity is eligible for rollover.
The 60 day deadline and what happens if it is missed
The deadline is stated as “If a plan pays you an eligible rollover distribution, you have 60 days from the date you receive it to roll it over to another eligible retirement plan.”
For a missed deadline, the topic says “you may still be able to complete a rollover by self-certifying that you otherwise qualify for a waiver of the 60-day requirement”. It adds “If you do not meet the requirements for automatic waiver or self-certification, you may apply to the IRS for a waiver of the 60-day requirement.”
Disasters get a separate line: “The 60-day period may be postponed if you were affected by a federally declared disaster”.
Withholding, direct rollovers and extra taxes
The withholding paragraph says “If you do roll it over and want to defer tax on the entire taxable portion, you’ll have to add funds from other sources equal to the amount withheld.” The alternative is stated plainly: “You can choose a direct rollover instead, in which you have the payer transfer a distribution directly to another eligible retirement plan (including an IRA).”
On additional taxes, the topic says “If you’re under age 59½ at the time of the distribution, any taxable portion not rolled over may be subject to a 10% additional tax on early distributions unless an exception applies.” It also says “Certain distributions from a SIMPLE IRA will be subject to an additional 25% tax instead of the additional 10% tax.” Our explainer on Form 5329 covers how that additional tax is reported.
Where this comes from
This page describes the IRS page titled Topic no. 413, Rollovers from retirement plans, as served on irs.gov on October 24, 2026. The IRS page shows that it was last reviewed or updated on 08 Oct 2026. The IRS can change a topic after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Assuming a rollover means nothing goes on the return. The topic says “it is reportable on your federal tax return.”
- Assuming every payment can be rolled over. The topic lists “A required minimum distribution;”
- Expecting the full amount to arrive when a plan pays you directly. The topic says withholding applies “even if you intend to roll it over later.”
- Assuming the 60 days has no flexibility at all. The topic says “you may apply to the IRS for a waiver of the 60-day requirement.”
Related: IRS tax topics by number, Is a pension annuity eligible for rollover, 20 percent withholding on a pension lump sum, Form W-4R, Form 5329 explained, Form 5498 boxes 2, 3 and 4, and Form 8606.
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Answer againSources
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Tax topics index (irs.gov): https://www.irs.gov/taxtopics
Read from the IRS pages linked above on October 24, 2026. General information, not tax or legal advice. The IRS topic page and the instructions for your own form control, and your own facts decide the outcome.