A trustee-to-trustee rollover is the preferred way to transfer one retirement account to another. All of these are potential problems when taxpayers take the distribution and handle the rollover themselves EXCEPT:

A) The taxpayer must complete the entire rollover process within 60 days or the distribution will be taxable.

B) The taxpayer is subject to penalty if they try to do a rollover from the same IRA more than once per year.

C) The distribution is subject to 20% withholding, and the taxpayer must come up with this amount themselves or it will be taxable.

D) The taxpayer cannot claim an exception to the 10% penalty.