IRA rollover
I have a client that has a CD maturing that is an IRA. The bank transfers it to a money market acct at maturity. We then roll it from the money market to his IRA account using a 60 day rollover. When his other cd matures next month, are we allowed to roll it to his IRA also? My understanding is you can’t move the same money twice, but can you move different money from the same account twice?
Permalink Submitted by Alan Spross on Tue, 2011-10-18 20:27
RIck,
Money from different accounts may be moved to the same account, but only one distribution is allowed to be rolled over from each separate IRA account.
If the mm account is a separate IRA account, only one distribution within 12 months can be rolled over from the mm account. But if a distribution is taken from the second CD and rolled to the new IRA that would be OK as long as it did not go into the mm account first.
You need to find out if each CD is a separate IRA account and the mm fund is also a separate IRA account. Only one distribution can be rolled from each of these accounts within 12 months. Direct transfers do not count, so perhaps the first CD was transferred directly to the mm account before the distribution was taken from the mm account.
I think with most banks each IRA CD is a separate account number, and if so each one of them is allowed a distribution to be rolled into another IRA. But the new IRA receiving these funds cannot itself distribute a rollover distribution without waiting 12 months from the date of the last distribution rolled into it.