Your client, prospect or you are jittery because of today's extremely volatile markets. He decides to move some of his IRA money to another investment. In order to do this, he decides to take a distribution of some of his IRA money to move to another custodian, perhaps a self-directed IRA custodian. But with the swings in the market he gets nervous that he might miss out on the upside while he is waiting for the paperwork to be processed for the new IRA. So he uses his IRA money, while it is outside of the IRA, to purchase his new investment. He figures he can just put the investment back into the new IRA, no harm, no foul, right?