What is an IRA transfer?
A transfer moves funds directly from one IRA custodian to another. You never take possession of the money, the current custodian sends it straight to the new one, which is why transfers are often called trustee-to-trustee moves.
Because the funds never leave the retirement system, transfers are generally not taxable events and are not reported as distributions.
Why is a transfer usually the simplest funding method?
No clock, no withholding, no frequency limit. Unlike a 60-day rollover, there's no deadline to meet and no mandatory withholding carved out of your balance; unlike indirect rollovers, transfers aren't limited to one per 12 months.
If your money is already in an IRA, traditional, and in many cases Roth or SEP, a transfer is typically the cleanest way to move it to a self-directed custodian.
How does a transfer show up in practice?
You open the new self-directed IRA, sign the new custodian's transfer request, and the two custodians handle the rest, usually within one to three weeks depending on the outgoing institution. Your job is mostly waiting and confirming arrival.