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Trustee-to-Trustee Transfer A transfer of funds in your traditional IRA from one trustee directly to another, either at your request or at the trustee's request, isn’t a rollover. This includes the situation where the current trustee issues a check to the new trustee but gives it to you to deposit. Because there is no distribution to you, the transfer is tax free. Because it isn’t a rollover, it isn’t affected by the 1-year waiting period required be- tween rollovers. This waiting period is discussed later un- der Rollover From One IRA Into Another. For information about direct transfers from retirement programs other than traditional IRAs, see Direct rollover option, later. Rollovers Generally, a rollover is a tax-free distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan within 60 days you received the payment or distribution. The contribution to the second retirement plan is called a “rollover contribu- tion.” Note. An amount rolled over tax free from one retire- ment plan to another is generally includible in income when it is distributed from the second plan. Kinds of rollovers to a traditional IRA. You can roll over amounts from the following plans into a traditional IRA. • A traditional IRA. • An employer's qualified retirement plan for its employ- ees. • A deferred compensation plan of a state or local gov- ernment (section 457 plan). • A tax-sheltered annuity plan (section 403 plan). Also, see Table 1-4. Treatment of rollovers. You can’t deduct a rollover con- tribution, but you must report the rollover distribution on your tax return as discussed later under Reporting roll- overs from IRAs and Reporting rollovers from employer plans. Rollover notice. A written explanation of rollover treatment must be given to you by the plan (other than an IRA) making the distribution. See Written explanation to recipients, later, for more details. Kinds of rollovers from a traditional IRA. You may be able to roll over, tax free, a distribution from your tradi- tional IRA into a qualified plan. These plans include the Federal Thrift Savings Fund (for federal employees), de- ferred compensation plans of state or local governments (section 457 plans), and tax-sheltered annuity plans (sec- tion 403(b) plans). The part of the distribution that you can roll over is the part that would otherwise be taxable (in- cludible in your income). Qualified plans may, but aren’t required to, accept such rollovers. Tax treatment of a rollover from a traditional IRA to an eligible retirement plan other than an IRA. Ordi- narily, when you have basis in your IRAs, any distribution is considered to include both nontaxable and taxable amounts. Without a special rule, the nontaxable portion of such a distribution couldn’t be rolled over. However, a special rule treats a distribution you roll over into an eligi- ble retirement plan as including only otherwise taxable amounts if the amount you either leave in your IRAs or don’t roll over is at least equal to your basis. The effect of this special rule is to make the amount in your traditional IRAs that you can roll over to an eligible retirement plan as large as possible. Eligible retirement plans. The following are consid- ered eligible retirement plans. • IRAs. • Qualified trusts. • Qualified employee annuity plans under section 403(a). • Deferred compensation plans of state and local gov- ernments (section 457 plans). • Tax-sheltered annuities (section 403(b) annuities). Time Limit for Making a Rollover Contribution You generally must make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Example. You received an eligible rollover distribution from your traditional IRA on June 30, 2018, that you intend to roll over to your 403(b) plan. To postpone including the distribution in your income, you must complete the rollover by August 29, 2018, the 60th day following June 30. The IRS may waive the 60-day requirement where the failure to do so would be against equity or good con- science, such as in the event of a casualty, disaster, or other event beyond your reasonable control. For excep- tions to the 60-day period, see Ways to get a waiver of the 60-day rollover requirement, later. Plan loan offset. A plan loan offset is the amount your employer plan account balance is reduced, or offset, to re- pay a loan from the plan. How long you have to complete the rollover of a plan loan offset depends on what kind of plan loan offset you have. For tax years beginning after December 31, 2017, if you have a qualified plan loan off- set, you will have until the due date (including extensions) for your tax return for the tax year in which the offset oc- curs to complete your rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset be- cause your employer plan terminates, or because you sever from employment. If your plan loan offset occurs for any other reason, then you have 60 days from the date the offset occurs to complete your rollover. Rollovers completed after the 60-day period. In the absence of a waiver, amounts not rolled over within the Chapter 1 Traditional IRAs Page 21