Rollover once a year rule

Submitted by MARK E REICH on Sat, 2014-02-22 16:43

My client has one IRA. In Dec 2013 we did a direct rollover from his employer’s pension plan to this IRA. The check was made payable to the custodian of the IRA f/b/o my client.
Now we want to do another direct rollover contribution involving his 401(k) plan assets to this same IRA- again having the check made payable to the custodian. Are we violating the once a year rollover rule since both rollover contributions are going to the same IRA within a 12 month period?

Thanks in advance to everyone!

Mark

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Permalink Submitted by Alan - IRA critic on Sat, 2014-02-22 17:57

No violation for two reasons. First, rollovers from a non IRA plan are not subject to the one rollover limit. Second, since no distribution is being made to the client, it also would not count.