60 Day Rollover then Direct Transfer

Submitted by steve harper on Fri, 2012-11-16 14:27

I have a prospective client who is in the process of doing a 60 day IRA rollover. If they were to place the IRA funds into a new IRA account via the 60 Day Rollover are they eligible to do a Direct Transfer to another new IRA account before waiting the 365 days?

Thanks!!



Submitted by Alan Spross on Fri, 2012-11-16 18:55

Yes, there are no time or numerical limits on direct transfers.

Were the client to do the direct transfer with the intent of doing another 60 day rollover from the new IRA account, there could be problems since these funds were not to become eligible for another 60 day rollover for 12 months. The IRS Regs do not address this particular scenario.



Submitted by steve harper on Fri, 2012-11-16 21:51

Thanks Alan! Very much appreciated. Always amazed at your knowledge to say the least.



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