Rollover IRA
A client received a distribution for $800.80 from an old 403B. The check was payable to him for $640.64 because they withheld $160.16 for taxes. Can he deposit the $640.64 check and then deposit another separate check for $160.16 to complete the full $800.80 rollover? I want to be sure this won’t be treated as two rollovers in a 12 month period since technically they are two separate deposits, but they are for the same distribution. Thanks!!
Permalink Submitted by Alan - IRA critic on Wed, 2021-12-08 20:36
Yes, the client can replace the withheld amount from their other funds to complete the rollover. The one rollover rule does not apply here for two reasons. First, it was a single distribution and second, the distributing plan was not an IRA, it was a non IRA employer plan.
Permalink Submitted by Jonathan Sard on Thu, 2021-12-09 13:21
Are you saying that the rule permitting ionly one rollover in a 12 month period does not apply to non-IRA employer plans?