Rollover from plans to IRA
Client took a distribution from retirement plans, 2 checks were issued, 20% withheld.
Remedy is to have client take the 20% out of pocket and add to the net amount of her two checks, and deposit all into her IRA, resulting in 100% rollover within 60 days. Then she’ll receive refund from IRS for the 20% withheld amount next year.
I wanted to make sure she would be OK with two different rollover checks. Because they both came from a plan, she won’t be violating the once-per-year rollover rule, correct?
Thanks!
Permalink Submitted by David Mertz on Tue, 2022-12-20 21:22
Correct. Distributions from a qualified retirement plan are not subject to the once-per-12-months limitation. So as long as the employer plan was not an IRA-based plan, rolling over these two distributions would not present a problem.