60 Day Rollover Rule
Have a potential client on the second year of a five year payout from an ESOP. The first payout was an ACH deposit to his bank (no taxes withheld) on 8/4/22. He then sent it to his IRA at Vanguard on 8/5/22. The second payout hit his bank this morning (8/3/23), and he was about to send it to Vanguard again via a 60 day rollover. If he waits one week to do the 60 day rollover, will it qualify? I’m essentially asking which transactions we should be considering when assessing the ‘one 60-day rollover every 12 months’ rule.
Permalink Submitted by David Mertz on Thu, 2023-08-03 17:30
The one-rollover-per-12-months limitation does not apply to distributions from an ESOP plan. That limitation only applies to IRA distributions rolled over to the same type of IRA, traditional or Roth. An ESOP plan is not an IRA.