What is the required time frame for completing a rollover from a qualified plan to another qualified plan or an IRA to avoid taxation?

To avoid taxation on a rollover from a qualified plan to another qualified plan or an Individual Retirement Account (IRA), the Internal Revenue Service (IRS) stipulates that the rollover must be completed within 60 days from the date the distribution is received. This time frame is crucial because failing to complete the rollover within the specified period may result in the distribution being viewed as taxable income. Additionally, if the rollover is not executed in the designated time, it may also trigger penalties if the individual is under age 59½. Therefore, adhering to the 60-day rule ensures that individuals can transfer their retirement funds without incurring immediate tax liabilities, helping to maintain their retirement savings' growth potential.