An IRA-to-IRA rollover is when you move money between IRAs of the same type. Usually, an IRA-to-IRA rollover involves the following steps:

1. You withdraw money from the first IRA, and the IRA sponsor sends you a check for that amount.
2. You deposit that check into your own checking account.
3. Within 60 days, you must deposit the funds into your second IRA as a rollover contribution.

It is important to note, however, that if you do not deposit the funds into another IRA within 60 days of receiving the withdrawn assets, the amount that you withdrew will be considered income, and you will be taxed on that amount.

The distribution from your first IRA will be reported to the IRS on Tax Form 1099-R. Depending upon your age, the distribution will be reported as premature or normal. When the "rollover contribution" is made to the receiving IRA, the financial organization will report the transaction to the IRS on Tax Form 5498.

A distribution that is rolled over to an IRA is treated as a distribution to you at the time it is taken from the IRA and IRS withholding rules apply. For information that is specific to your situation, please consult your tax adviser.

60-Day Restriction — You have 60 days to complete a rollover. The 60 day time period begins on the day after you receive the distribution.

12-Month Restriction — You may not complete more than one rollover per IRA in any 12 month period. One year must pass from the date of a distribution before you are eligible to roll over another distribution from the same IRA. You may not roll over the same assets within 12 months.

Required Minimum Distribution (RMD) Restriction—You may not roll over your RMD amount. You must first satisfy your RMD before you can roll over assets from one IRA to another IRA.

Irrevocable Rollover Restriction—For Traditional and Roth IRAs, you must irrevocably designate in writing at the time of the rollover deposit that the contribution is to be treated as a rollover.

• Employer's qualified retirement plan, profit-sharing or stock plan
• Deferred compensation plan of a state or local government (section 457 plan)
• Tax-sheltered annuity plan (section 403 plan)
• Annuity plan

Your assets must be eligible for a rollover. Additionally, by directly rolling over your assets from a retirement plan, you can avoid the mandatory withholding of 20%. Please note that a direct rollover is reportable to the IRS and you will receive a 1099-R and 5498 Tax Forms.

For information that is specific to your situation, please contact your plan administrator or tax adviser.

When sending a check for deposit, you must send a personal check that is made payable to Harbor Funds. Generally, when you roll over IRA assets, you will receive a check payable to you. You must deposit that check into your own checking account and then issue a personal check for the IRA rollover. Harbor will not accept a check that is payable to anyone other than Harbor Funds, even if it is endorsed.

If you do not have an existing IRA or you do not want to comingle your assets with your existing IRA, please complete the IRA Account Application and mail it along with the Rollover Request from Qualified Retirement Plan form.

First class mail to:
Harbor Funds
P.O. Box 804660
Chicago, IL  60680-4108

Express or registered mail to:
Harbor Funds
111 South Wacker Drive
34th Floor
Chicago, IL  60606-4302