what is the limit for direct rollover ?
we have a client that put her money in an IRA in a CD and after 3 months CD matured and she is taking the money out and putting it into a 401(k).
originally when she openned the IRA money came in from client’s previous 401(k) . are there any limits to how many times people can do a direct rollover ?
I think it is only for indirect rollover ( when check is made payable directly to the client) that there is a limit of 1 per 12 months since last indirect rollover.
Permalink Submitted by Alan Spross on Mon, 2009-08-17 21:18
There are no limits in this situation. The one rollover limitation per 12 months only applies to distributions FROM an IRA that are rolled TO an IRA. Therefore, even an indirect rollover from an IRA to an employer plan would not count against the limitation. Of course, many employer plans will not accept transfers from IRA accounts, no matter how they are done. In addition, only the current employer plan would accept a rollover from an IRA.