does a roth ira have the same 60 day rollover/transfer rules as an IRA
client has roth ira in a bank and wants to transfer to a mutual fund. the bank will only give 10day grace. I know a Roth ira is non taxable but I just don’t want to make a mistake.
question: Can the client go into the bank, withdrawal the full amount of the roth ira (he is 65 yrs old), deposit into his checking account and then make out a check for the same amount within the 60 days and put it in another roth ira investment?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2015-02-06 22:37
Yes, but that would use up the one permitted rollover he has for all of his IRA accounts, TIRA and Roth combined. He would then have to be very careful not to do another one for 12 months or he could not roll the second one over. Best to move the funds by direct transfer. I guess the 10 day period refers to the time before the bank renews a CD. If they have any type of savings or MM fund to transfer to, then client will have time to select where the funds are to be transferred,
Permalink Submitted by Ben Meyer on Sun, 2015-02-08 01:55
Also, if you place the finds from the matured IRA CD into a savings or MM account at the same bank as a temporary place to hold the funds, be sure that the savings or MM account is under the same IRA plan. If the savings or MM account is not an IRA account, that would count as a distribution.
Permalink Submitted by Alan - IRA critic on Sun, 2015-02-08 02:15
Yes, good point.