An IRA transfer is a direct means of transferring IRA funds from one custodian to another. It is normally done using a transfer that is first signed by the account holder and then sent from the receiving custodian to the releasing custodian requesting a partial or complete transfer of IRA funds or assets. The funds are sent straight from custodian to custodian without any tax consequences. A rollover is the preferred and most efficient method when moving from like-accounts such as from one Traditional IRA to another. There is no limit on the number of transfers that can be done in a calendar year.
A rollover is generally done when transferring between two different accounts such as from a 401(k) to an IRA. A transfer can be direct, meaning it is sent directly from one custodian to another or indirect meaning that the funds are sent from a custodian to the account holder. The account holder then has 60-days to move these funds to another retirement account such as an IRA. If the account holder fails to move the funds within 60-days they will be taxed on those funds and possibly penalized for early withdrawal. This is also known as a 60-day rollover. You are only allowed one 60-day rollover in any 12-month period.