roth same as trad in 60 day transfer
client has bank CD and wants to transfer to another company.
Can he just have the bank close out the CD (its up for maturity) and make a check out to himself, deposit and then write out a new check for the same amount to the new company (he is over 501/2)?
Thank you.
Douglas
Permalink Submitted by Alan - IRA critic on Tue, 2013-01-15 00:39
Perhaps. He can do an indirect 60 day rollover of the CD proceeds, subject to the one rollover limit per IRA account. For example, if the expiring CD was funded by an indirect rollover less than 1 year ago, he cannot do another indirect rollover from this CD account, he would have to do a direct transfer. He would also not be able to do a rollover if he rolled over any distribution from this CD in the past 12 months. If the CD was funded more than one year before the expiration there is no problem and there is also no problem if it was funded by a direct transfer. The same rules apply to the new CD, ie if he indirectly rolls the funds to the new CD, he cannot do another rollover from the new CD until 12 months passes.