2 403b to IRA is more than one rollover?
Client is 79 and has two 403b accounts, one with AXA and one with VALIC.
He wants both in and IRA for stretch capabilities that the 403b doesn’t offer.
if we do a direct rollover of both of them to an IRA:
a. he will be okay having the checks go directly to the IRA company?
or…
b. He will be taxed on one of them since he did two rollovers in one year when your only allowed one?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Thu, 2016-04-28 21:51
Direct rollovers are the way to go because they eliminate 20% withholding. But whether the rollovers are done by direct rollover or 60 day indirect rollover they do not count against the one rollover rule. That rule only applies to IRA to IRA rollovers. If an employer plan is on either end of the rollover the one rollover limit does not apply.