---
title: What Is an IRA Direct Transfer?
description: A direct transfer is the movement of IRA funds or assets directly from one IRA custodian to another.
---

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# What Is an IRA Direct Transfer?

A direct transfer is the movement of IRA funds or assets directly from one IRA custodian to another. Through a direct transfer, the IRA owner never takes possession of their retirement funds or assets. The main advantage of a direct transfer is that no tax liability is reported to the IRS with the distribution. This is because funds are transferred from one institution to another. In most cases, a direct transfer is a simpler option as it avoids having to comply with the 60-day rule and the possibility of incurring taxes and penalties.

Learn more about funding options and estimated timelines at STRATA's [Fund Your Account](https://www.stratatrust.com/self-directed-iras/fund-your-account/) page. 

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STRATA Trust Company (“STRATA”) performs the duties of a directed (passive) custodian, and as such does not provide due diligence to third parties regarding prospective investments, platforms, sponsors, dealers or service providers. As a custodian, STRATA does not sponsor, endorse or sell any investment and is not affiliated with any investment sponsor, issuer or dealer. STRATA does not provide investment, legal or tax advice. Individuals should consult with their investment, legal or tax professionals for such services.