IRA Direct Transfer – 3 times
I want to make sure that the following moves are not harming my client and that the moves are not considered Rollovers.
1st move- Direct Trustee to Trustee transfer from Fidelity IRA to Pershing IRA of $200,000
2nd Move- From the Pershing IRA I will process a $50,000 direct transfer to Lincoln IRA
3rd MOve- From Same Pershing IRA I will process another $50,000 direct transfer to another IRA custodian- ATHENE
Client will not touch funds.
These moves should not fall under the 12 month rollover rule correct since the moves are trustee to trustee . Please confirm.
Permalink Submitted by Alan - IRA critic on Thu, 2022-07-21 00:27
You are correct. If handled correctly by all parties there should be no 1099R for any of these transactions and no 5498 issued by the receiving custodian. If any of these forms are issued in error, an effort should be made to have the custodian issue corrected forms showing 0. Obviously, if a 1099R is issued the IRS will consider the transaction to be a distribution, not a transfer, and that will cause issues with the one rollover limitation.