IRA rollovers
If a client has an IRA in bank (1) and requests a check; has an IRA in bank (2) and requests a check latter in the same 12 months; another IRA in a brokerage account and takes a check again latter in the same 12 months and all three rollover within 60 days of each respective withdrawal all into a newly created ira account, would this violate the receipt rules and make any of the transactions taxable?
Permalink Submitted by Alan Spross on Fri, 2009-10-16 02:57
There is no violation here since each IRA has only one distribution that was rolled over. But each of the 4 accounts now has a 12 month waiting period measured from the date of the original distribution, and for the IRA that received all 3 rollovers, the waiting period is measured from the date of the most recent rollover contribution to that account.