Limit on number active IRA rollovers
Are there any limits on the number or active IRA rollovers you can have outstanding at one time? For instance, can I take a distribution from IRA A and then within 60 days from this distribution take a distribution from IRA B to repay IRA A (not through a trustee to trustee transfer) and then have another 60 days from the withdrawel date of IRA B?
Permalink Submitted by mk foss on Wed, 2009-09-30 20:42
There is no limit on the number of active IRA rollovers – the limitation would be on the number of IRAs that the owner has to keep the IRA ball from touching the ground.
IRS Pub 590 describes the technique and mentions 3 IRAs but that is just an explanation and not a limitation of any kind.
Permalink Submitted by Anonymous (not verified) on Wed, 2009-09-30 23:01
Another way to describe your issue is that you can only take [u]one[/u] distribution per plan per 365 days that you can then rollover. In your example, is it really irrevelvant where the funds came from to repay IRA A. Once you roll the money back you are done with IRA A. IRA B can be replenished within 6o days of the distribution you took from it.
I would agree, that Pub 590 gives some good scenerios to look at.
pmk
Permalink Submitted by Alan Spross on Thu, 2009-10-01 00:34
It should also be noted that you may not necessarily be able to take one distribution per account. The rollover limitation also applies to the first distribution from an account if that particular account received a rollover contribution.
Example: You roll a distribution from A to C. Then you roll a distribution from B back to B. Looking to do yet another, you realize that A and B have already issued distributions, but C has not. Still, a distribution taken from C within one year of the distribution from A that went to C will violate the one rollover rule because C received the prior rollover.
Permalink Submitted by Anonymous (not verified) on Thu, 2009-10-01 01:06
Thanks alan, that is a good point. I have seen many thinking they can somehow bend the rules by moving from one plan to another…..
pmk