IRA CDs
In order to transfer money from one account to another and not incur a penalty, do you have to do a trustee to trustee transfer?
In order to transfer money from one account to another and not incur a penalty, do you have to do a trustee to trustee transfer?
Permalink Submitted by Joseph Arsenault on Wed, 2009-06-17 20:07
Based on the subject heading I assuming you are talking about IRA to IRA transfers.
You can perform a trustee to trustee transfer like you mentioned, or you can perform a 60-day rollover.
A 60-day rollover gives you 60 days from the date of receipt to redeposit the amount that was distributed into another IRA. The catch is that you are only allowed one 60-day rollover per 12 months. So If you rolled from IRA 1 to IRA 2, you would not be eligible to perform a 60-day rollover out of either of those IRAs for 12 months starting with the date of receipt on the distribution.
There is no limit to trustee to trustee transfers. Both however, do avoid the 10% penalty.
-J