Rollovers, the act of withdrawing funds from one retirement account and depositing them into another, can occur between any type of account. Rolling over a 401(k) to an Individual Retirement Account may be common, but it is also permissible to roll over an IRA into another IRA. Rollovers are allowed once per year provided certain guidelines are met. The most important is that the money must be deposited into the new account within 60 days to keep its tax-free status.
Better Returns on Investment
If a person is unhappy with the current return on his IRA, a rollover to an IRA that is performing better makes perfect sense and allows one to get the best possible return on their investment.
Extra Rollover to Roth
A conversion from a traditional IRA to a Roth IRA can take place in the form of a rollover. While standard rollovers are permitted just once per year, rolling over a traditional IRA to a Roth IRA is exempt from this rule and can be done even a traditional IRA to traditional IRA rollover took place within the past year.
Short-Term Loan
As IRA rollover rules give you 60 days to make a deposit into another retirement account, you have access to the money withdrawn from the IRA to do as you please. It's important to remember you do have to place the entire amount into a new IRA within 60 days or you will pay taxes and penalties.
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