2 60 Day Rollovers
Just to confirm. I can make two withdrawals from an IRA account and rollover to 1 IRA within 60 days without violating 60 day rule. Correct?
Just to confirm. I can make two withdrawals from an IRA account and rollover to 1 IRA within 60 days without violating 60 day rule. Correct?
Permalink Submitted by Alan Spross on Mon, 2011-08-22 20:16
No. The one rollover limit applies to distributions, not to the number of rollover contributions. In your example there are two different distributions, and only one can be rolled over. Conversely, if you took out just one distribution and rolled it to different IRAs on different dates, that would be OK because you only rolled over ONE distribution.
If you move the funds by direct transfer, the number of those is unlimited.
If you took out two distributions in error and are now stuck, but still within 60 days, there is a way out. You could convert one of them to a Roth IRA and then recharacterize it back to your TIRA. Conversions and recharacterization do NOT count toward the rollover limit, so this is an escape hatch. But you must discover it before you do one of the rollovers and also before 60 days elapse.