Fuskie has explained it well, but, let me say it another way to make sure you are not confused.First of all, the source of information about IRAs is IRS Publication 590.http://www.irs.gov/pub/irs-pdf/p590.pdfThe term “rollover” is generally used when a 401k (or similar) account is moved to an IRA or sometimes when a change is made to the custodian that holds an IRA.The rule you are perhaps referring to is the fact that if money is taken out of a tax deferred account (401k or IRA) you have 60 days to put it back into another tax deferred plan or you will be taxed on the amount and perhaps be subject to a penalty.Within a tax deferred account money can be moved between investment without penalty or being subject to tax. So you can sell one fund and replace it with another or with individual stocks, bonds, CDs, etc.Transactions of buying, selling, and transferring investments within a taxable account does create a taxable event so you would be subject to capital gains (if any) tax.Bob
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