Rollover 401k to Trad IRA
In 2008 I did 2 Rollovers from my 401k to traditional IRA.
Both were in the form of checks made out to the IRA trustee for the my benefit.
Do these qualify as direct rollovers?
Are they then exempt from the once annual Rollover limit?
Thanks
Permalink Submitted by Marvin Rotenberg on Fri, 2009-01-02 17:34
Yes your trustee to trustee rollover from a qualified plan to the traditional IRA is considered a direct rollover.
The once annual rollover doen’t apply here. The one rollover applies to a distribution payable to an individual and they have 30 days to roll it over.
Marvin
Permalink Submitted by Alan Spross on Fri, 2009-01-02 18:47
Actually, the one rollover limit does not apply to any form of rollover from a qualified plan to an IRA. The limit applies only to distributions FROM an IRA. A rollover must be completed in 60 days.
You should get a 1099R from the plan coded “G” for direct rollover. This still needs to be reported on Form 1040 on line 16a with “rollover” entered next to 16b. 16b should be -0-.