If you want to make a tax free rollover, you must complete the rollover within 60 days of receiving the funds in question from the existing IRA. It is important to note that the window is sixty days and not 2 months.

If you fail to complete the rollover, the transaction is treated as a withdrawal and hence taxed as regular income. Furthermore, if you have not attained the age of 59½ years or older, you will be charged a 10 percent early withdrawal penalty.