Generally, if you take a distribution from an IRA, you can avoid tax (including the 10% early distribution penalty if under age 59½) by rolling it over to another IRA or qualified retirement plan within 60 days. However, you can only make one rollover every 12 months. The IRS recently explained that this one-rollover limit does not apply to distributions from failed banks where the FDIC has been appointed receiver and there is no acquirer for the bank (IRS INFO 2017-0018). The reason: The taxpayer did not initiate the distribution.
The one-rollover-per-year limit does not apply to:
Test for determining deductibility of IRA deductions. Active participants in employer retirement plans are subject to IRA deduction phase-out rules if adjusted gross income exceeds certain threshold.