Which of the following statements regarding rollovers versus transfers of IRA accounts are true?  

By Investopedia Staff AAA
Q:
Which of the following statements regarding rollovers versus transfers of IRA accounts are true?  
I. Rollovers are limited to one per year
II. Transfers are unlimited
III. Rollovers must be accomplished within 60 days
IV. Transfers may only be done semi-annually
   
A) I, II, III
B) I, IV
C) II, IV
D) I, III
A:
The correct answer is A)
When an individual moves “qualified” (pre-tax) money from, for instance, a pension plan into an IRA, there are two choices; rollover or transfer. If the individual takes a check from a pension plan, he has 60 days to get the funds into the hands of an IRA trustee without incurring a penalty. There is a one-time-per-year limitation on rollovers. If the individual finds a new trustee for the IRA and has the trustee of the pension plan directly transfer the funds, there is no limit to the number of transfers in a year.

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