one rollover into two different IRAs
Hello,
in 2015, Client received a distribution from IRA “A”, and then within 60 days deposited two checks of different amounts totaling the amount of the IRA “A” distribution, into two different IRAs, IRA “B” and “C”.
Does this violate one-rollover-per-year rule, and if so, how does the IRS calculate which IRA violated it, “B” or “C”?
Thank you,
Dave
Permalink Submitted by Alan - IRA critic on Thu, 2016-12-08 02:48
Dave, this does NOT violate the rule. The one rollover is applied to the number of distributions, not to the number of rollover contributions. Since there was only ONE distribution, it can be rolled over into as many portions as needed and on different days as long as they are within 60 days of receipt of the distribution. Conversely, if client received two distributions even a day apart, only one of them can be rolled over. In that case, the first rollover contribution is a valid rollover, but the other distribution is not allowed to be rolled over.
Permalink Submitted by David Mitchell on Thu, 2016-12-08 02:57
Thank you as always!
Permalink Submitted by Brad Hankins on Fri, 2016-12-09 18:34
Alan, in your one rollover example above, would the rollover be allowed if the two distributions had been received on the same day and rolled into one IRA?
Permalink Submitted by Brad Hankins on Fri, 2016-12-09 19:53
We’ve discussed this topic on a separate thread, however your comment above that if two distributions were received “even a day apart, only one of them can be rolled over” caused my question in the previous post.